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WorksheetsCredit Scores and Basics
Total questions: 20
Worksheet time: 11mins
What is a person's Credit History?
How many credit cards they have
History of their credit transactions
Their credit score
What is one characteristic of good debt?
It depreciates in value
There is a negative effect on the person
It appreciates in value
Furniture, Clothing, Food are examples
What is NOT a type of alternative credit?
Payday loan
Title and Pawn
Rent-to-own
Credit card
A good credit score... (2 Correct)
Is generally below 300
Is generally above 650
Usually decreases your chance of obtaining credit
Usually increases your chance of obtaining credit
Which is NOT one of the three Credit Reporting Agencies?
Equifax
U.S. Credit Agency
Experian
TransUnion
Another name for Open ended credit is...
Upside down
Rotating
Closed
Revolving
Another name for Close ended credit is...
Revolving
Open
Installment
Cut Off
If an error is found on your Credit history, you should...
Call your mom and complain
Fix it yourself
Contact the CRA & company that provided the incorrect information
Ignore it
How many free Annual Credit Reports can you receive PER Credit Agency?
As many as you want
One
Three
One Half
Can your Credit History and score effect you positively or negatively?
Positively
Both, it depends on how you use it
Negatively
Generally, FICO has scores between...
-5-0
they don't score credit
501-990
300-850
Generally, VantageScore has scores between...
501-990
1-10
They don't score credit
300-850
Which is one example of how you DO NOT obtain a good credit score?
Pay bills consistently and on time
Apply for credit sparingly
Have a mix of different types of credit
Never pay your bills
What information is found in a Credit Report?
Your nationality and religion
Your race and gender
Consumer(personal) information
Criminal background
What should you NOT do when shopping for Credit?
Ask Questions
Pick the first offer you find
Read the contract carefully
Examine the fees and interest rates
The total amount you borrow should be... (2 correct)
less than 20% of your annual net income and less than 10% of your monthly income
More than your annual and monthly income
Calculated without housing payments
less than 10% of your annual net income and less than 20% of your monthly income
Does your credit history affect your insurance, employment, utilities, and housing?
only if you want it to
Yes, which is why you should be responsible with credit usage
Never, no one cares how responsible you are with your money
No, it only affects your ability to obtain other credit
What is the difference between Fixed and Variable APR?
Fixed may change depending on factors, but Variable cannot change during period and time on the outlined agreement
Variable may change depending on factors, Fixed cannot change during period and time on the outlined agreement
You set the amount on both
Which pair is incorrectly matched?
Lender-- a person/ organization who makes funds available to borrow
Tax Lien-- a legal claim by a government and entity to take an individual's property or income when their taxes are not paid in credit
Open Ended Credit-- a record of a person's use of credit
Close Ended Credit-- a loan that a borrower must repay in specified numbers of equal payments
Overall, Credit is...
BAD BAD BAD
either a good or a bad tool, it depends on how responsible you are with it
only a tool that should be used by people who are over the age of 30
GOOD GOOD GOOD
