Credit

Question 1

What is a perfect credit score?

Answer 1

850

Question 2

What do credit scores range between?

Answer 2

300 - 850

Question 3

What are the three credit reporting bureaus?

Answer 3

Equifax, Experian, and Trans Union

Question 4

Components used to calculate your credit score.

Answer 4

Based on your credit report which includes: number of accounts, types of accounts, length of credit history, payment history, inquiries, etc.

Question 5

What company calculates credit scores in the United States?

Answer 5

FICO (Fair Isaac Corporation)

Question 6

Where do you pull a Trans Union credit report from?

Answer 6

Credit Profile Display

Question 7

How long are Transunion Credit Reports good for?

Answer 7

6 months

Question 8

What do we use TU credit reports for?

Answer 8

Everything except mortgage loans

Question 9

What is a soft hit to your credit score?

Answer 9

Credit score will be negatively affected but it can recover

Question 10

On a credit report what does “R” stand for?

Answer 10

Revolving

Question 11

On a credit report what does “L” stand for?

Answer 11

Limits

Question 12

On a credit report what does “I” stand for?

Answer 12

Installment

Question 13

On a credit report what does “M” stand for?

Answer 13

Mortgage

Question 14

On a credit report what does “C” stand for?

Answer 14

Joint

Question 15

On a credit report what does “I” stand for?

Answer 15

Individual

Question 16

On a credit report what does “A” stand for?

Answer 16

Authorized

Question 17

On a credit report, what does an ‘A’ represent and mean?

Answer 17

An ‘A’ stands for ‘Authorized’ which means that person can use that trade line but is not personally responsible for the repayment of that debt.

Question 18

We hold people personally responsible for credit trade lines that have an ‘A’ and therefore include those debts on their PFIA. (T/F)

Answer 18

False, they are not held responsible for those debts, therefore we do not include them on the PFIA.

Question 19

What should be written and then listed at the top of credit reports to get an understanding of their current credit situation?

Answer 19

RLIM (revolving, limits, installment, mortgage)

Question 20

What two categories should ‘R’ and ‘L’ be broken into?

Answer 20

Secured and Unsecured

Question 21

What is a denial reason in regards to the relationships between ‘R’ and ‘L’?

Answer 21

If the customer has used 50% of their current unsecured revolving credit limits

Question 22

If unsecured debt is _________ of TCA, this is a denial reason.

Answer 22

20%