math quiz review

name 3 credit reporting agencies

- Equifax - Experian -TransUnion

a wage garnishment is an involuntary form of wage assignment where the employer deducts money from the employee's paycheck to pay a creditor. can you think of a reason that someone may have one of these?

- child support - bankruptcy - alimony

Why may a person need a cosigner on a loan?

- if they have low credit or no credit - you get low interest rate

Why does a consumer want to have a high FICO score?

- to have low interest rate - be able to borrow $ and buy anything

Lowest FICO score you need to have "good" credit rating

670

FICO scores at or greater than ___ qualify for "very good" interest rates. Having a score below ___ means you are considered to have a "very poor" credit and are significant risk to the creditor.

740 579

Lowest FICO score you need to have "exceptional credit rating

800

why is it a good idea to know if your loan has a prepayment penalty?

If you pay it off early , you don't have to pay any fees

When you "pawn" something is it gone forever?

No, if you pay back the loan borrowed within the contract dates, you can get your items back.

Are pay day loans a good idea? Why or Why not?

No, you are going to pay interest on your own money

How do you avoid paying interest?

Pay amount in full by due date

5 factors that affect your credit score

a. payment history - 35% b. amount owed - 30% c. length of credit history - 15% d. new credit - 10% e. credit mix- 10%

factors that do NOT affect credit scores

age, race, gender, income, and interest rates

"buy now, pay later"

credit

Difference between a creditor and a debtor

creditor- lends out the $ debtor- borrows/owes the $

"buy now, pay now"

debit/cash

most popular score that credit agencies use

fico: 300-850

which of the 5 factors are most important

payment history 35%