Personal Finance
A good credit score allows a person to more easily
Borrow money, borrow money more cheaply, borrow a larger amount of money
Is the person that promises to pay someone later
Borrower
Why should you check your credit report
Can help you better understand your credit
How do lenders determine the credit risk of a person
Checking their credit score and rating
Borrowing money and promising to pay the debt later
Credit
An organization that maintains records on people's credit history and issues credit reports
Credit Bureau
Is your credit score that is converted into a rating, which can range from poor to execellent
Credit Rating
Is a detailed report on a person's credit history and habits
Credit Report
Is how likely a person will payback a lender
Credit Risk
Is a number or points that measures your risk of paying lenders back
Credit Score
A credit score may be used
To rent a place, for insurance, by an employer
For the payment history area of a persons credit score, you receive points for playing bills on time like a phone bill, car payment, and credit card payments
True
Once a year, everyone is allowed to view their own credit report from each of the credit bureaus, free of charge
True
When calculating your credit scores, the credit bureaus look at the amounts you owe on all of your accounts
True
What does each credit bureau collect
Account information
What is a credit score commonly known as
FICO
What is a credit bureau
Data collection agency that gathers account information
What is everyone allowed to view
Equifax
All the following are credit bureaus
Equifax, Experian, TransUnion
Which one is considered the best credit rating
Execellent
Creating many new credit accounts will increase your credit score
False
The shorter your history of using credit the more points you earn in this area
False
They issue credit or lend money to others
Lenders
The credit bureaus are organizations that
Maintain records on everyone's credit activity and habits
For your credit score, you can earn points for
Making good credit decisions
How can points be earned for your credit score by NOT opening or doing something
Pay off any collectors
What do credit bureaus issue to lenders
Payment history
Of the five areas used to measure a person's credit, what two areas are worth the most points
Payment history and how much you owe
Which two categories count for the most points when measuring your credit score
Payment history, length of time having credit