UGBA 135 Midterm Questions and Answers Fully Solved 100%
1 view 0 purchase
Module
UGBA 135
Institution
UGBA 135
Can you increase credit score by increasing your credit limit? - ️️Yes, only if you
stay below a 50% debt-to-credit ratio on each credit card. 30% ratio is the best for top
scores. Increase credit limit to lower credit ratio
Three credit scoring agencies - ️️Transunion () -- Empirica sco...
UGBA 135 Midterm
Can you increase credit score by increasing your credit limit? - ✔️✔️Yes, only if you
stay below a 50% debt-to-credit ratio on each credit card. 30% ratio is the best for top
scores. Increase credit limit to lower credit ratio
Three credit scoring agencies - ✔️✔️Transunion (tuc.com) -- Empirica score
Equifax (equifax.com) -- Beacan score
Experian (experian.com) -- Experian model
credit hold on account - ✔️✔️-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
FICO Score - ✔️✔️measure of consumer credit risk
Highest FICO Score - ✔️✔️850
Factors determining FICO Score - ✔️✔️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? - ✔️✔️3
How do you establish good credit? - ✔️✔️borrow $ and pay it back on time according
to its terms
How much is taken out of your paycheck for SS and Medicare? - ✔️✔️-12.4% of
earned income to SS
-2.9% of earned income to Medicare
Debt-to-credit ratio - ✔️✔️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 - ✔️✔️-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? - ✔️✔️the excess is used to pay off debt of highest interest rate, not the
card with the smallest balance
Maximum interest on credit card account - ✔️✔️no legal maximum
Who can see your credit scores? - ✔️✔️
Website for free credit report (federally mandated for credit reports) -
✔️✔️annualcreditreport.com
Best time to establish credit - ✔️✔️when you don't need it
aka younger i thinks
When are your credit payments due? - ✔️✔️generally about 21-25 days after your
billing cycle ends
Secure vs unsecure line of credit - ✔️✔️Debit is secure
Credit is unsecure (nothing to back it up other than credit history)
How does cancelling inactive credit cards affect your credit score? - ✔️✔️-can lower
because it will increase your d/c ratio
-if you cancel, cancel newest card first
Prepaid cards - ✔️✔️-offered by banks and nonbanks
-not linked to bank accounts
-fees: activation, inactivity, to load money onto cards, if you don't load money each
month, check balance info, to use an ATM for cash, for using a check to close an
account
Cash advance - ✔️✔️-using your credit card to withdraw cash
-higher interest rates, no grace period (incur interest rates right off the bat)
grace period - ✔️✔️set length of time after the due date during which payment may be
made without penalty
What is a retail charge card? - ✔️✔️-a credit card issued by a retailer allowing you to
charge purchases made only with their store
-higher interest rate 20-30% on unpaid balances
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PatrickKaylian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.82. You're not tied to anything after your purchase.
