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PF4: Credit vs. debt, 3 C's of credit, FICO score
By Jeffrey See
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Last updated over 6 years ago
5 questions
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Question 1
1.
Question 2
2.
Question 3
3.
Question 4
4.
Question 5
5.
Which of the following is the
LEAST
important factor in determining a person's creditworthiness?
capacity to repay the loan
previous ownership of a home
whether the borrower has collateral
character (credit score)
Many financial advisors say that a fixed rate of interest is better than a variable rate. Why is this?
A fixed rate gives you constant, predictable payments.
A fixed rate builds your credit score more than a variable rate.
A fixed rate will always be lower than a variable rate.
A fixed rate is easier to refinance than a variable rate.
What's the difference between credit and debt?
Credit and debt are not related to each other
Debt must be extended before credit is assumed
Credit and debt are synonymous
Credit must be extended before debt is assumed
Which one of the 3 C's of credit is related to one's
ability
to repay a loan?
Capacity
Collateral
Capital
Character
Which of the following FICO scores would give a borrower the
BEST
chance of being approved for a loan while also paying the lowest APR?
550
800
715
620