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