Credit Flashcards
What is a perfect credit score?
850
What do credit scores range between?
300 - 850
What are the three credit reporting bureaus?
Equifax, Experian, and Trans Union
Components used to calculate your credit score.
Based on your credit report which includes: number of accounts, types of accounts, length of credit history, payment history, inquiries, etc.
What company calculates credit scores in the United States?
FICO (Fair Isaac Corporation)
Where do you pull a Trans Union credit report from?
Credit Profile Display
How long are Transunion Credit Reports good for?
6 months
What do we use TU credit reports for?
Everything except mortgage loans
What is a soft hit to your credit score?
Credit score will be negatively affected but it can recover
On a credit report what does “R” stand for?
Revolving
On a credit report what does “L” stand for?
Limits
On a credit report what does “I” stand for?
Installment
On a credit report what does “M” stand for?
Mortgage
On a credit report what does “C” stand for?
Joint
On a credit report what does “I” stand for?
Individual
On a credit report what does “A” stand for?
Authorized
On a credit report, what does an ‘A’ represent and mean?
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.
We hold people personally responsible for credit trade lines that have an ‘A’ and therefore include those debts on their PFIA. (T/F)
False, they are not held responsible for those debts, therefore we do not include them on the PFIA.
What should be written and then listed at the top of credit reports to get an understanding of their current credit situation?
RLIM (revolving, limits, installment, mortgage)
What two categories should ‘R’ and ‘L’ be broken into?
Secured and Unsecured
What is a denial reason in regards to the relationships between ‘R’ and ‘L’?
If the customer has used 50% of their current unsecured revolving credit limits
If unsecured debt is _________ of TCA, this is a denial reason.
20%
