Loans and money

What is a FICO score

• A person credit score

• The bank account number

• Routing number

Lenders, such as banks, use credit scores to evaluate the potential risk posed by lending money.

• False

• True

Credit scores ranges from 300-850

• True

• False

Why do you want to have a high FICO score?

• Better interest rates

• Qualify for loans

• Better credit card offers

• All of the choices

The 4 C’s

• Capacity, Capital, Character, Collateral

• Capacity, Collateral, Capital

• Capital, Capacity,

Credit cards are a form of open ended or revolving credit

• True

• False

Credits card are a useful tool if……

• Used responsibly

• Paid in full each month

• Stay within your limits

• All of the choices

The annual percentage rate that stays the same for the life of the loan

• Fixed

• Variable

The rate that will rise and fall as the lending rates change….

• Variable

• Fixed

A loan that requires proof of collateral

• Secured loan

• Unsecured loan