Dave Ramsey Chapter 4 Section 3 The Credit Score

What does a FICO score primarily measure?

• Financial success

• Debt levels

• Income

• Savings

What is a common misconception about credit scores?

• They measure financial success

• They are not important

• They are easy to calculate

• They are only for banks

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What is one of the five components of the FICO score?

• Income level

• Debt history

• Number of credit cards

• Monthly expenses

What should you focus on if you want to take out a mortgage without a credit score?

• High income

• Large down payment

• Low expenses

• High savings

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What is a process called that uses non-traditional credit or no credit score lending?

• Automated underwriting

• Manual underwriting

• Credit scoring

• Financial planning

What might an employer want to see during the interview process?

• Credit score

• Bank statements

• Tax returns

• Investment portfolio

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What is the truth about needing a credit card to build a credit score?

• It is essential

• It is not necessary

• It is the only way

• It is recommended

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What is the impact of having no credit score when renting an apartment?

• Impossible to rent

• Need to provide extra documentation

• Higher rent

• Longer lease term

What is the main factor that a FICO score does not measure?

• Debt

• Financial success

• Credit history

• Loan amounts

What is a key factor in getting a mortgage without a credit score?

• Employment history

• Credit card usage

• Investment income

• Savings account balance