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Very Poor Credit Score |
BELOW 500 , seek |
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Poor credit score |
500-579 if your introits rate is high you may not qualify for loans at all |
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Fair Credit score |
580-620 |
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Okay credit score |
620-679 |
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Good Credit score |
680-700 would qualify for MOST loans |
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Excellent Credit Score |
700+ qualify for BEST loan terms and interest rates |
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How can you boost ur Credit Score and avoid a low one in the 1at place? |
By PAYING your Bills ON TIME and managing what you barrow responsibly |
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What financial behaviors will typically lead to a low credit score? |
Maxed out Credit Cards |
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Payment History |
A history of the payments you have made on all credit you have obtained, which affects your credit score. Tracks such things as whether or not you pay your bills on time, whether or not you always pay at least the minimum amount, etc. ( 35%) |
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Amounts Owed |
PPl who use less of their available credit, considered lower risk (30% ) |
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Length of Credit History |
(15%) |
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New Credit |
rated based on the number of recently opened accounts and the number of recent credit inquiries (10%) |
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Types of credit used |
number of various types of accounts (credit cards, loans, mortgages, etc.) (10%) |
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Which of the following factors will have the greatest impact on your credit score? I. Length of Credit History II. Payment History III. Amounts Owed IV. Types of Credit Used |
II (Payment History) III ( Amounts Owed |
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Credit Report Info: Personal info |
Name , address, and Social Security number on the TOP of the report. – Make it accurate and up to date |
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Public Records |
Lists info that’s available, includes things like Court Judgements and bankruptcy filings |
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Potentially Negative Items |
Unpaid accounts and late payments and may stay on ur record UP to 7 Years. |
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Payment History |
includes On Time and Late Payment of ur debts – {Reminder}: Payment history has the GREATEST impact on ur Credit Score |
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Accounts in Good Standing |
Have been reported to the credit bureau(s) as paid on Time and in FULL. |
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Soft Inquiry |
Occurs when someone runs a background check on your credit like when ur starting @ a new job and DOESN’T affect ur Credit Score. |
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Hard Inquiry |
Occurs when someone checks ur Credit History to make a lending decision. – A hard Inquiry AFFECTS ur Credit Score and can remain on report for up to 2 YEARS. |
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Did you know? |
Every year ur entitled to one credit report from each of the credit BUREAUS for a total of 3 Free reports a year. |
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Which is LEAST important to maintaining a healthy credit score? |
Knowing your EXACT Credit Score |
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Excellent Credit Score |
Preferred Interest rate of 13% {720} |
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Fair Credit Rate |
Land higher Interest Rate of 23% {620} |
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Which of the following actions has NO impact on your credit score? |
You inquire about a credit card charge. |
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Which of the following MOST influences your credit score? |
Payment History |
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Which of the following statements about credit scores is TRUE? |
All of the above. a.}Credit scores reflect how likely individuals are to repay their debts. b.Credit scores range from the low 300’s to the mid 800’s. c.}Each person has three credit scores. d.} All the above |
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Which of the following actions would improve your credit score? |
Paying off your Credit card bill |
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Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car? |
Pay off his Credit Card Balance each Month |
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Having a good credit score is important because: |
It can impact your ability to be approved for bank loans |
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In which of the following situations is having a good credit score important? |
All of the above. A.} Applying for a loan @ a bank B.} Buying a car C.} Renting an Apartment D.} All of the above |
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Which behaviors might lead someone to have a low credit score? |
Missing a car payment |
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Which of the following actions can NEGATIVELY impact your credit score? |
You forgot to pay the cable bill. |
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If your credit reports show different scores, what should you do? |
Get in touch with credit bureaus to see if they have different or inaccurate info on your credit history |
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