Daily Skills - Credit Scores

What is the term meaning the bank's ability to trust you to pay back a loan?

• Credit Card

• Credit Agency

• Credit Score

• Credit Limit

520 is considered a very good credit score.

• true

• false

Loan Officers will check the following to assess a borrower's credit worthiness:

• Credit Report and Credit History

• GPA and Transcripts

• Parents Income and Net Worth

• All of the above

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

• all of the above

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

• 300-579

• 800-850

• 580-669

• 740-799

The longer your credit history, the better your Credit Score

• True

• False

Opening many credit accounts in a short period of time is actually good for your Credit Score

• True

• False

Strategies to improve your Credit Score include:

• Paying down your debt

• Keeping your cards open after you pay them off

• Increasing your Credit Card limit

• All of the above

If you want to improve your Credit Utilization Rate, use no more than what amount of your available credit?

• 50%

• 30%

• 20%

• 40%

Advantages of a good Credit Score include:

• lower interest rates

• lower down payments

• faster loan approval

• all of the above