Understanding Credit Scores

What is a potential consequence of not understanding financial obligations?

• Improved credit score

• Missed payments

• Increased savings

• Lower interest rates

What is a credit score?

• A measure of your income

• A record of your employment history

• A numerical representation of your creditworthiness

• A list of your assets

Why is it important to understand your credit score?

• It determines your health insurance premium

• It is crucial for financial stability

• It helps in planning vacations

• It affects your grocery bills

What might happen if someone doesn't understand the importance of a credit score?

• They will have more free time

• They might face financial difficulties

• They will automatically get a loan

• They will receive higher interest rates

Which of the following is NOT affected by your credit score?

• Loan approval

• Weather conditions

• Interest rates

• Job opportunities