Chapter 14: Application Analysis - Borrower Credit Flashcards
Define the term TRADE LINE
Information on a debt, found in a credit report, that contains the date the credit was granted, the balance, terms and repayment history.
Discuss the items involved in calculating a credit score
Payment History, Amounts Owned, Length of Credit History, New Credit and Inquiries, Types of Credit, and Number of Trades on File are all used to calculate a credit score.
What can an individual do to increase his or her credit score?
Ensure the payments are always made on time
Limit the number of credit inquiries
Maintain balances below 30% of credit limits.
If an individual has a judgement filed against him or her, in what section of a credit bureau would this information be found?
Public Records Section
If an individual has an account rated as an R3 on his or her credit bureau, what type of credit is this rating referring to and how many months in arrears is this account?
This is a revolving account such as a credit card and it is 2 months in arrears
What is the relationship between a credit score and the delinquency rates of Canadians?
The lower the credit score the highest the delinquency rate
How long does a bankruptcy remain on an individuals credit report provided by:
a) Equifax
b) Transunion
Equifax - 6 Years
Transunion - 7 years
How long does credit counselling remain on an individual’s credit report provided by:
a) Equifax
b) Transunion
Equifax - 3
Transnunion - 2
If an individual dispute an item in his or her credit report, what can she or he do?
Contact the Credit Bureau to remove the item.
Can a mortgage Agent provide a copy of a client’s credit report to the client?
No, a Borrower must contact the Credit Bureau directly for this report.
