VB 9 math

You are told that your credit score of 650 is better than 40% of the population. Your neighbor has a credit score of 600. Which of the following could be true?

a) His score is better than 30% of the population

You have two options for credit cards. Option one offers a fixed annual percentage rate of 17%. Option two offers you an introductory annual percentage rate 10% for the first year increasing to 23% the second year. Each card offers you a $1,500 limit. In each of the first two years you reach your limit. Using simple interest, calculate the interest for both cards for the first two years. What is the difference in interest charges?

a)$15

Your credit score is 580. Your current credit card limit is $2,000. Your current credit card balance is $1,950. If you shrink your debt balance by 13% each month for 12 months what will your balance be?

a)$366.66

You want to purchase your first house. A conventional mortgage will require a credit score of approximately 630. Your credit score is 560. You need to increase it by 70 points to get to 630. If you increase your score by 12% per year, how many years will it take to lift your score to 630?

a)1.1 yrs

If your payment history counts for 35% of your credit score and the type of credit you use accounts for 10% of your score, which should you probably work harder on to improve your score?

a)Payment history

The current average credit score in the USA is 687. In the past 5 years your average annual credit scores were 680, 665, 688, 694 and 710. Is you score average over the past 5 years? Round to the nearest point.

a)Yes

You receive three credit scores: 680, 705, 695. What is your average credit score?

b)693

A bank tells you that if you increase your credit score by 50 points, it will reduce your interest rate on your $10,000 car loan by 1 percent. How much will this save you in the first year?

c)$100

Your credit card debt to limit ratio has a huge impact on your FICA score (30%). It should always be kept below 15%. If your card has a limit of $3,000 and your credit card debt has reached it, what payment will you need to apply to your balance to pay it down to 15%?

c)$2,550

A person with a FICO score of 780 applies for a loan and gets an interest rate of 5% with a monthly payment of $439. A second person, with a FICO score of 550 applies for the same loan and gets a rate of 22% with a monthly payment of $511. What is the monthly savings for the person with the highest credit score?

c)72