Credit Score Factors

What is primarily used by lenders to assess your credit risk?

• Employment history

• FICO score

• Personal income

• Educational background

What information does the FICO score include?

• Payment history and credit utilization

• Favorite color and car model

• Dietary preferences

• Social media activity

How often can FICO scores change?

• Every five years

• With any change in credit report data

• Monthly

• Yearly

What is the highest possible FICO score?

• 500

• 700

• 850

• 1000

Why are FICO scores beneficial to borrowers?

• Offer more credit choices at competitive rates

• Eliminate the need for a credit history

• They guarantee loan approval

• They reduce the interest rates on all loans

How does payment history impact your credit score?

• Payment history impacts credit score by reflecting your spending habits

• Payment history impacts credit score by reflecting your reliability in repaying debts.

• Payment history has no impact on credit score

• Payment history only impacts credit score if you pay early

What is the importance of credit utilization ratio in determining your credit score?

• A higher credit utilization ratio is always better for your credit score

• Credit utilization ratio is important as it reflects how much of your available credit you are using, with a lower ratio being favorable for your credit score.

• Credit utilization ratio has no impact on credit score

• Credit utilization ratio only matters for certain types of credit accounts

How does the length of credit history affect your credit score?

• A shorter credit history generally leads to a higher credit score.

• Credit history is only considered for new credit applications.

• Credit history has no impact on credit score.

• A longer credit history generally leads to a higher credit score.

What impact do different types of credit accounts have on your credit score?

• The impact of different types of credit accounts on your credit score depends on various factors such as credit utilization, payment history, and credit mix.

• The type of credit account does not affect your credit score

• Having multiple credit accounts always improves your credit score

• Closing credit accounts has no impact on your credit score

How do credit inquiries influence your credit score?

• Credit inquiries are only relevant for new credit applications.

• Credit inquiries can lower your credit score.

• Credit inquiries have no impact on your credit score.

• Credit inquiries can only increase your credit score.