FF_VA_U5__Managing Credit

When applying for a loan, why might a lender be interested in your credit score?

• To determine your income level

• To set the loan's interest rate and terms based on risk

• To assess your employment history

• To evaluate your savings account balance

Which of the following is TRUE about a credit report? It is a complete history of one type of credit you have , Credit reports are maintained by the 5 main credit bureaus , You can get a copy of your credit report for free , You can get a credit report only when you're 21 years old

• It is a complete history of one type of credit you have

• Credit reports are maintained by the 5 main credit bureaus

• You can get a copy of your credit report for free

• You can get a credit report only when you're 21 years old

Failing to pay federal student loans may result in:

• Reduced student loan interest

• Higher credit score

• Tax refund garnishments

• Revocation of your degree

What information can you find on a credit report?

• Your medical insurance information

• Your parents' and siblings' contact information

• Your education level

• Inquiries you've made on new lines of credit

A cosigner on a loan can help by:

• Boosting approval odds

• Reducing the loan amount

• Increasing the interest rate

• Shortening the loan term

Establishing credit early can help with: Quick loan approvals, Higher credit card limits, Avoiding yearly credit checks, Getting better interest rates

• Quick loan approvals

• Higher credit card limits

• Avoiding yearly credit checks

• Getting better interest rates

Using the Avalanche Method, you...

• put extra money towards loans with the highest interest rate

• focus on paying off the smallest loans first

• make minimum payments on all loans

• consolidate all loans into one payment

All of the following are part of a credit report EXCEPT: Spending Habits, Loan Repayment, Credit Limit Utilization, Current Credit Inquiries

• Spending Habits

• Loan Repayment

• Credit Limit Utilization

• Current Credit Inquiries

Which types of debt usually CANNOT be erased or reduced?

• Credit card debt

• Federal student loans

• Personal loans

• Medical debt

How often should you check your credit report for errors?

• Every month

• At least once a year

• Every two years

• Only when applying for a loan