Chapter 6 Flashcards
Snapshot of your financial life - history of your accounts/ payments
Credit Report
A number generated from the details of your credit report
Credit Score
What are the three major Credit Bureaus?
- Experian
- Equifax
- Transunion
How long do financial records remain on your credit score?
7 - 10 yrs
What are somethings found on Credit Report.
- History and track record of paying bills
- opened closed accounts
- Late payments
- credit inquiries
How long do you need to have credit to have have history?
3 - 6 months
What a government website that allows for ONE FREE credit report per year.
www.annualcreditreport.com
List the 5 factors considered when calculating a credit scored and their percentages impact.
1) your payment history 35%
2) How much you owe 30%
3) length of credit history 15%
4) credit mix 10%
5) new credit 10%
What are the 4 sections found on credit report?
- Personal Information
- Credit history
- Credit Inquiries
- Public records
What is the Lowest to highest Credit Score
300 to 850
Paid in full each month, acts as a short-term interest-free loan
Credit Cards
Pay all or nothing, HIGH interest rates
Pay Day Loans
Standard repayment time 10 years. 6 month grace period.
Student Loans
