Cost of Bad Credit

What is the main factor affected by a credit score?

• Career growth

• Monthly expenses

• All of the above

• Borrowing money

Why do people with good credit get the lowest interest rates on loans and credit cards?

• They have a good job

• They have a large savings account

• They have proven to pay back debts in full

• They have a high income

Why do lenders charge higher interest rates to people with bad credit?

• They have a higher income

• They are more likely to pay back the debt in full

• They have struggled to keep up with payments in the past

• They have a good job

What do home and car insurance companies use to help determine a policy premium?

• Income level

• Credit-based insurance score

• Savings account balance

• Job title

Why do consumers with bad credit often file insurance claims more often?

• They have a higher income

• They are more responsible with their finances

• They have struggled to keep up with payments in the past

• They have a good job

Why do employers use a credit report in the hiring process?

• To determine the candidate's education level

• To decide whether or not a person is responsible with their finances.

• To evaluate the candidate's skills

• To assess the candidate's work experience

Why do telephone and utility companies use information in a credit report?

• To determine the candidate's education level

• To decide whether to provide services to that person because they will pay their bills.

• To assess the candidate's work experience

• To evaluate the candidate's skills

Why do landlords use credit report information when renting an apartment to someone?

• To determine the candidate's education level

• To decide whether to provide services to that person

• To evaluate the candidate's financial responsibility

• To assess the candidate's work experience

What happens if a person has a bad credit score when applying for a loan or credit card?

• They will get approved easily

• They will pay a much higher interest rate

• They will receive a higher credit limit

• They will pay a much lower interest rate

How does a bad credit score affect the approval for a loan or credit card?

• It has no impact on the approval process

• It makes the approval process easier

• It makes the approval process difficult

• It increases the credit limit