Credit Report and Scores Flashcards
What is a credit report?
A report that shows how you and borrowed and repaid debts
What main items are included on a credit report?
Details such as accounts open and payment history, public records, inquiries, name, address, liens, foreclosures
What is the difference between a soft and hard inquiry?
Soft - happens when creditors look at your report for promotional purposes. Hard- Creditors that have requested your report after you applied for credit with them.
What is a credit score?
A number which summarizes a person’s credit history and gives companies an indication of their credit risk.
What are agencies that provide lenders with financial information on credit applicants?
Credit Bureaus
Which component of a credit score will carry the most weight?
Payment history - 35%
The amount of outstanding debt on a credit card as compared to the card’s credit limit is?
Credit utilization ratio
How long does negative information remain on your credit report (except for bankruptcy)?
7 years
Which website provides a person a free credit report?
www.annualcreditreport.com
Can an insurance company have access to a person’s credit report?
Yes
What is a very good FICO score?
750 and above
