Credit Reports and Credit Scores

Goods, services and/or money received in exchange for a promise to pay back  at a future date.

• Promise
• Credit
• Credit Card
• Worthiness

A numerical summary of your credit history that indicates your credit worthiness

• Credit Score

• Credit Report

A record of a person’s use of credit

• Credit Score

• Credit Report

The maximum dollar amount that can be borrowed

• Credit Limit

• Credit Minimum

• Borrowing

• Borrow Limit

Why is it important to establish positive credit history?

• Higher credit scores result in lower interest rates on loans

• You are more likely to be offered a loan by a bank

• Positive credit history results in higher credit scores

• All of the above

How long will a negative credit action usually remain on a credit report?

• 4 years

• 11 years

• 7 years

• 15 years

What is important in establishing good credit?

• Making payments on time

• Being late on payments

• Spending 100% of your credit limit

• Missing a payment

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which best describes what this is likely to mean for Bryce?

• The interest rates on his loan will be lower, since his credit score is low.

• The purchase price of the item he needs the loan for will be higher due to his low credit score.

• The monthly loan payments will be lower due to his lower credit score.

• The interest rates on his loan will be higher, since his credit score is low.

When may a person view his/her credit report for free?

• At any time and an unlimited number of times

• Once a year, from each of the three main credit reporting agencies

• A person may not review his/her credit report

• When a person has sufficient financial resources

Which is an exceptional credit score?

• 672

• 555

• 713

• 813