Understanding Credit History

What might a lender or employer look at when you apply for a job, a loan, or a credit card?

• Your educational background

• Your individual's credit history

• Your social media profiles

• Your references from friends

Which of the following is NOT included in your credit history?

• Record of all loans

• Credit card debt

• Major credit reporting bureaus

• Your race

What do lenders use a credit score for?

• To determine your social status

• To rate how likely it is that a person will repay their debts

• To understand your educational qualifications

• To track your spending habits

Which major credit reporting bureaus are there? (a)  

• Equifax, Experian, and TransUnion
• Google, Yahoo, and Bing
• Visa, MasterCard, and American Expr
• Federal Reserve, Treasury, and IRS

What can have a huge impact on the quality of your life according your notes? (a)  

• Your educational degree
• Your credit report
• Your internet browsing history
• Your employment history

(a)   is NOT included in a credit report.

• Employment history
• Home Value
• Religion
• Current address

What is the range of credit scores? (a)  

• 200-800
• 300-850
• 250-900
• 350-800

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Why is it important to have a good credit score?

• It is not important; credit scores are irrelevant.

• It affects your ability to get loans and the interest rates you pay.

• It only affects your ability to rent an apartment.

• It determines your eligibility for employment.

What can you do to make sure you receive a good credit score?

• Frequently change jobs and addresses.

• Pay your bills on time and keep credit card balances low.

• Use as much of your available credit as possible.

• Apply for new credit cards every month.

How is a person's credit score important to a bank or financial group that loans money to people?

• It helps them decide what color credit card to issue.

• It indicates the person's favorite shopping locations.

• It helps them assess the risk of lending money to the person.

• It is used to determine the person's political preferences.

Tags

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