Chapter 3 Credit- So far

What are the 5 C's of Credit

• Character

  Capital

  Collateral

  Capacity

  Conditions

• Character

  Capital

  Credit

  Conscience

  Cosigner

• Credit

  Collateral

  Christen

  Collateral

  Concise

When applying for credit, is it preferable to receive a low interest rate or a high interest rate?

• Low

• High

Your credit score is called your _______ score.

True or False.   30 day late payments will not hurt your credit score.

• True

• False

Which one of these things can really help improve your credit score?

• Apply for a bunch of different credit cards at once.

• Use your debit card wisely

• Request a free copy of your credit report

• Pay your bills on or before the due date.

If you pay off your credit card balance in full each month, does this make your credit score go up or down?

• Up

• Down

How many days late do you need to be on a payment before it affects your credit score?

• 1

• 15

• 30

• 21

Name one of the 5 C's that lenders use to decide to approve or deny your loan.

An example of a lender is

• A bank or credit union

• The person applying for the loan.

• Muhlenberg School District

The borrower is

• The bank or credit union

• The person applying for the loan or credit card