Credit Score

What is the correct definition of interest?

• The amount the lender pays to the borrower.

• The change in inflation based on credit.

• The cost of loaning money.

• The cost of borrowing money.

Tags

CCSS.7.RP.A.3

Mary has never had a credit card, and she has never taken out any loans before. Why might she be denied a loan if she applies for one?

• If you do not have any credit, your credit score will be zero.

• If you do not have any credit, lenders may see you as irresponsible or risky.

• If you do not have any credit, lenders cannot determine your level of risk.

• If you do not have any credit, lenders will think you are young and unable to pay back the loan.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Which of the following is true about credit lenders and the maximization of credit?

• Lenders like to see credit balances that are about 30% or less of your credit limit.

• Lenders like to see credit balances that are a little less than your credit limit.

• Lenders like to see credit balances that are equal to or more than your credit limit.

• Lenders like to see credit balances that are about 60% or less than your credit limit.

Which is TRUE of payment history and its relation to credit reports?

• A credit report does not track how late you are on credit payments.

• A credit report tracks how late you are on credit payments.

• A credit report removes late payments after one year.

• A credit report only tracks if you're 120+ days late on credit payments.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

How does credit score affect interest rates?

• The higher your credit score, the lower your loan interest rates will be.

• Your credit score does not impact interest rates.

• High interest rates cause lower credit scores.

• The higher your credit score, the higher your loan interest rates will be.