UGBA 135 Midterm questions with 100% correct answers graded A+

UGBA 135 MidtermFICO Score - correct answer measure of consumer credit risk Highest FICO Score - correct answer 850 Factors determining FICO Score - correct answer Credit report is based on: -35% paying your bills on time over time -30% your debt-to-credit ratio ( borrowing money/ credit limit) -15% length of credit history -10% mix of credit cards and loans (like to see things other than credit card; Rent, any loan (e.g. leasing car)) -10% new accounts and recent applications for credit How many FICO scores does a person have? - correct answer 3 How do you establish good credit? - correct answer borrow $ and pay it back on time according to its terms How much is taken out of your paycheck for SS and Medicare? - correct answer -12.4% of earned income to SS -2.9% of earned income to Medicare Debt-to-credit ratio - correct answer how to calculate: -$3000 debt, $6000 in credit :: 3000/6000 = 50% D/C ratio -try to be below 50% || 30% is the best Identity Theft: if you're a victim - correct answer -close and replace all accounts that have been tampered with or didn't open -file a police report If you are carrying a balance and you pay more than the minimum payment, where does the excess go? - correct answer the excess is used to pay off debt of highest interest rate, not the card with the smallest balance credit hold on account - correct answer -when a customer is consistently late in making payments, has exceeded their credit limit, or is identified as a bad risk, you can prevent additional credit purchases by placing their account on credit hold -if hold is executed, it will count against credit Maximum interest on credit card account - correct answer no legal maximum Who can see your credit scores? - correct answer Website for free credit report (federally mandated for credit reports) - correct answer Three credit scoring agencies - correct answer Transunion () -- Empirica score Equifax () -- Beacan score Experian () -- Experian model Best time to establish credit - correct answer when you don't need it aka younger i thinks When are your credit payments due? - correct answer generally about 21-25 days after your billing cycle ends Secure vs unsecure line of credit - correct answer Debit is secure