Business Math Exam Unit 4 & 5 Questions with Complete Solutions
Unit 4.1: Basics of Managing Credit - ANSWER-Unit 4.1: Basics of Managing Credit How to build credit as a student? - ANSWER-Make payments on time, payoff balance, dont let balances grow, dont open/close acc frequently How to reduce hard inquiries? - ANSWER-14 day period=1 inquiry Harms credit less How to calculate net worth? - ANSWER-What you own(assets) - what you owe(liabilities) = net worth What are the 3 main credit agencies? - ANSWER-Experian, Transunion, Equifax What are the benefits of credit cards? - ANSWER-Rewards, Good credit score, Low interest rates on credit cards/loans Unit 4.2: Credit History and Reports - ANSWER-Unit 4.2: Credit History and Reports What are the 5 worst credit report entries that can ruin your score? - ANSWER-Charge-offs, Debt collections, Bankrupcy, Foreclosure, Repossession Charge-offs - ANSWER-When credit card issuers write off debt as uncollectable Debt collection - ANSWER-Hire a third party debt collector to attempt to collect payment Bankrupcy - ANSWER-Allows you to legally remove liability for some or all your debts Foreclosure - ANSWER-When you default on a mortgage Repossession - ANSWER-When you default on auto loan Unit 4.3: Credit Score - ANSWER-Unit 4.3: Credit Score
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