LUOA Personal Finance Module 3 Questions with Correct Answers

LUOA Personal Finance Module 3 Questions with Correct Answers What is a credit score? - Answer-a "snapshot" of a person's credit worthiness at one point in time What company is the leading source for most lenders researching credit information on a person applying for a loan or some type of credit? - Answer-The Fair Isaac Corporation What is the credit utilization ratio? - Answer-it is a ratio of the amount of debt you owe to the amount of debt you have been approved for What three things should you avoid doing so your credit score won't be affected? - Answer--transferring a credit balance from one credit card to another -closing credit accounts -not using credit cards From the list below, choose the three leading credit reporting bureaus that lenders access to check credit scores. - Answer--Experian -TransUnion -Equifax Do creditors always report activity on your account and all new accounts to the three credit reporting bureaus? - Answer-No, so some of your credit history may be missing from one or all three What kind of credit is the most favorable to have on your credit report? - Answer-credit backed by assets or equity such as a house mortgage or car loan