Questions and Answers
You only have one credit score called your FICO.
False
FICO stands for Federal Insurance and Credit Operations.
False
Types of credit used accounts for 10% of your credit score.
True
800 is the highest FICO score.
Signup and view all the answers
Having better credit should save you money on the principal of loans.
Signup and view all the answers
Defaulting on child support payments can impact your credit.
Signup and view all the answers
The lower your score, the lower the risk is to lenders.
Signup and view all the answers
Your FICO score determines whether or not you are a 'good' customer.
Signup and view all the answers
Barry is married; this will impact his credit score.
Signup and view all the answers
Your FICO score changes over time.
Signup and view all the answers
Credit Bureau scores are the only scores used.
Signup and view all the answers
Being unemployed impacts your credit score at all three agencies.
Signup and view all the answers
Your score is the same at the three credit reporting agencies.
Signup and view all the answers
Bob is 18; this will impact his credit score.
Signup and view all the answers
Barbie lives in South Central Los Angeles; this will impact her credit score.
Signup and view all the answers
There are four main credit reporting agencies; one of them is Beacon.
Signup and view all the answers
The higher your credit score, the less you can expect to pay for your loan.
Signup and view all the answers
Consumer-related inquiries do not impact your credit score.
Signup and view all the answers
The severity of delinquency, how long past due, matters.
Signup and view all the answers
Adverse public records can impact your credit score.
Signup and view all the answers
Amounts owed makes up the largest percentage of your credit score.
Signup and view all the answers
Promotional inquiries do not impact your credit score.
Signup and view all the answers
Payment history makes up a majority of your credit score.
Signup and view all the answers
The lowest your credit score can be is 300.
Signup and view all the answers
One part of your credit score includes nude credit.
Signup and view all the answers
Nigel is purple; this will not impact his credit score.
Signup and view all the answers
Equifax is a credit reporting agency.
Signup and view all the answers
Number of past items due does not impact your credit score.
Signup and view all the answers
No one piece of information or factor will determine your credit score.
Signup and view all the answers
Leslie is a Chinese Jew; this will impact her credit.
Signup and view all the answers
Because of credit scores, people can get loans faster and credit decisions are more fair.
Signup and view all the answers
One piece of information can hurt your credit score.
Signup and view all the answers
Child support payments (ordered by a judge) are part of your credit score.
Signup and view all the answers
FICO stands for Fair Isaac and Company.
Signup and view all the answers
No one has a FICO score over 800 or below 350.
Signup and view all the answers
No one has a FICO score over 850 or below 200.
Signup and view all the answers
The amount of money you owe and the number of accounts with balances affect your score.
Signup and view all the answers
The three main credit reporting agencies are Equifax, Experian, and TransUnion.
Signup and view all the answers
FICO scores are the only credit bureau scores when it comes to credit.
Signup and view all the answers
Credit scores have no impact on how fast you get a loan.
Signup and view all the answers
No one piece of information or factor alone will determine your score.
Signup and view all the answers
You have one FICO score where the report must contain at least one account that updated in the past six months.
Signup and view all the answers
The severity of delinquency (how much owed) matters.
Signup and view all the answers
Bob is 18; this might impact his ability to get a loan.
Signup and view all the answers
Payment history and length of credit history make up a majority of your credit score.
Signup and view all the answers
Study Notes
Credit Score Myths and Facts
- Individuals have multiple credit scores, not just a single FICO score.
- FICO refers to Fair Isaac and Company, not Federal insurance and Credit Operations.
Credit Score Components
- The types of credit used contribute to 10% of your FICO score.
- Payment history is crucial for determining credit scores but does not exclusively dominate the score.
- Amounts owed do not make up the largest percentage of a credit score.
Financial Behavior Impact
- Defaulting on child support payments can negatively impact credit.
- Consumer-related inquiries, such as checking your own credit, do not affect scores.
- The number of past due items influences your credit score.
Score Ranges and Changes
- FICO scores range from 300 to 850, contrary to the belief that the maximum is 800 or the minimum is 350.
- The lowest possible credit score is 300, while scores can reach up to 850.
- FICO scores can fluctuate over time based on individual financial behaviors.
Reporting Agencies
- The three main credit reporting agencies are Equifax, Experian, and TransUnion; there are not four major agencies.
- Equifax is confirmed as a credit reporting agency.
Characteristics of Scoring
- No single piece of information determines credit scores; it's a combination of factors.
- The severity and duration of delinquency, along with past due amounts, impact scores.
Miscellaneous Facts
- Personal attributes such as marital status, job occupation, or race do not impact credit scores.
- Child support payments ordered by a judge are not used to calculate credit scores.
- Under government laws, naming a dog "FICO" could misrepresent credit-related services.
General Understanding of Credit
- Better credit should theoretically lead to savings on interest for loans, though it does not lower the principal owed.
- Credit scores influence the speed at which loans can be obtained and aim to promote fairness in lending decisions.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on FICO credit scores with this set of flashcards. Each card presents a statement related to FICO, challenging what you know about credit scoring. The quiz helps clarify common misconceptions and facts regarding your credit score.
