Unit 5B: Credit

FICO Credit Scores consist of:

• credit profile, marital status, total assets, job income

• credit history and debt ratio

• Amt owed, New Credit, Length of Credit History, Credit Mix, Payment History

• Income and how much you have in the bank

An "Excellent" Credit Score is in the range of:

• 300-579

• 750-850

• 900-999

• 600-749

To build a good credit history, you should

• open as much credit as possible quickly

• use the maximum credit allowed on all your credit cards

• pay on time and as much of your balance as possible

• all of these

My friend offered the bank his house as .... when he needed a loan.

• collateral

• debt

• term

• tenure

Which type of loan…

Is not subsidized (meaning only YOU pay the interest)

• Federal

• Private

Which type of loan…

Is available as a subsidized loan (meaning the GOVERNMENT helps pay the interest)

• Federal

• Private

Money can be best described as

• Medium of transaction
• Medium of exchange
• Deposit in Banks
• Payment through cheque

_______________________is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

• Currency

• Collateral

• Credit Card

A person has a student loan that he has to repay after he graduates. He will make his monthly payments over 10 years. What type of loan does he have?

• Secured

• Adjustable

• Diversified

• Installment

Answer explanation

An installment loan is one that is paid back in monthly payments for one or more years.

Bankruptcy will not remove the following: (Please select all that apply)

• Credit Card Debt

• Student Loans

• Child Support

• Alimony