Building Credit with Kendra

Kendra wants to buy a car but lacks sufficient credit history for a loan. She explores options like secured credit cards, credit builder loans, and retail store cards to build her credit. Each option requires on-time payments. Kendra opts for a credit builder loan, pays it off over 12 months, and improves her credit score, enabling her to buy the car. The video emphasizes the importance of considering various credit-building strategies and directs viewers to consumerfinance.gov for more information.

What is Kendra's main goal in the video?

• To get a job

• To improve her credit score

• To buy a new house

• To travel abroad

What is required to obtain a secured credit card?

• A security deposit

• A high credit score

• A co-signer

• A long credit history

How does a secured credit card help build credit?

• By providing a high credit limit

• By offering cashback rewards

• By not requiring a deposit

• By requiring on-time monthly payments

What happens at the end of a credit builder loan term?

• The borrower receives their money back

• The borrower loses their deposit

• The borrower gets a new loan

• The borrower pays a penalty

What is a typical monthly payment for a credit builder loan?

• $10 to $20

• $50 to $100

• $200 to $300

• $500 to $600

What is a characteristic of retail store credit cards?

• They have high credit limits

• They require a security deposit

• They are difficult to obtain

• They usually have lower credit limits

Why did Kendra choose a credit builder loan?

• It was the only option available

• It helped her build credit and savings

• It required no monthly payments

• It offered the highest credit limit

What was the outcome for Kendra after building her credit?

• She was unable to buy a car

• She improved her credit score and bought a car

• She lost her savings

• She had to apply for another loan

What is emphasized as important when trying to improve credit?

• Choosing the most expensive option

• Avoiding all credit cards

• Only using secured credit cards

• Considering all available options

Where can one find more information on building credit?

• creditkarma.com

• consumerfinance.gov/credit

• creditcards.com

• bankofamerica.com