Chapter 14 - Application Analysis – Borrower Credit

Question 1

What can an individual do to increase his or her credit score? (3)

Answer 1

1. Limit inquiries
2. Make payments on time
3. Keep utilization below 30%

Question 2

If an individual has a judgment filed against him or her, in what section of a credit bureau would this information be found?

Answer 2

Public Records section

Question 3

Can a Mortgage Agent provide a copy of a client’s credit report to the client?

Answer 3

No

Question 4

For Types of Accounts: What does O stand for?

Answer 4

O = Open Account - Account that was opened in the last 30-90 days. Doesn’t count towards credit rating

Question 5

For Types of Accounts: What does R stand for?

Answer 5

R = Revolving Credit (i.e., CC’s Department Card)

Question 6

For Types of Accounts: What does M stand for?

Answer 6

M = Mortgage

Question 7

For Types of Accounts: What does I stand for?

Answer 7

I = Installment

Question 8

For Types of Accounts: What does C stand for?

Answer 8

C = Line of Credit

Question 9

Trade Information Ratings: What does 0 stand for?

Answer 9

0 = Too new to rate

Question 10

Trade Information Ratings: What does 1 stand for?

Answer 10

1 = Payment is made on time (not over one payment past due)

Question 11

Trade Information Ratings: What does 2 stand for?

Answer 11

2 = 30 days past due

Question 12

Trade Information Ratings: What does 3 stand for?

Answer 12

3 = 60 days past due

Question 13

Trade Information Ratings: What does 4 stand for?

Answer 13

4 = 90 days past due

Question 14

Trade Information Ratings: What does 5 stand for?

Answer 14

5 = 120 days (4 months) past due

Question 15

Trade Information Ratings: What does 7 stand for?

Answer 15

7 = Borrower is making regular payments under a consolidation order

Question 16

Trade Information Ratings: What does 8 stand for?

Answer 16

8 = Reposession

Question 17

Trade Information Ratings: What does 9 stand for?

Answer 17

9 = Collections/write off