Wk 17:Unit 5 TEST Managing Credit

Payment history and account types

Payment history and total owed

Outstanding balances and credit history length

Credit history length and new account inquiries

Making payments above the minimum requirement

Taking on additional work to boost her income

Reducing discretionary spending like streaming subscriptions

Applying for another credit card to cover shortfalls

Hiring a debt settlement service

Implementing a repayment strategy like the Snowball or High-Rate Method

Creating a debt management plan

Consulting with a credit counselor

Details of student loan activity

History of car loan payments

Records of credit card transactions

Salary from your current job

Both processes involve asset liquidation and stay on credit reports for 10 years

Chapter 7 involves selling assets, while Chapter 13 includes a repayment plan

Chapter 7 applies to individuals; Chapter 13 applies to businesses

Chapter 7 only removes student loan debt, while Chapter 13 eliminates all debts

Both processes involve asset liquidation and stay on credit reports for 10 years

Chapter 7 only removes student loan debt, while Chapter 13 eliminates all debts

Chapter 7 applies to individuals; Chapter 13 applies to businesses

Chapter 7 involves selling assets, while Chapter 13 includes a repayment plan

Borrowing small amounts from friends and repaying promptly

Always selecting “credit” when asked “credit or debit?” at stores

Asking parents to cosign or add him as an authorized user on their credit card

Taking private student loans unnecessarily

Debt can be used to purchase valuable assets like real estate

Debt inherently raises liabilities such as unpaid balances

Increasing debt directly improves credit scores

Spending beyond income levels improves financial status

Both will pay the same loan amount over five years

Sophia’s monthly payments will be about $100 higher

Lenders cannot set interest rates based on credit scores

Ethan’s monthly payments will be about $100 higher

Modifying loan terms without prior notice

Publicly posting someone’s credit report

Denying a loan based on the applicant’s race

Charging an interest rate exceeding 20% APR

High-rate method

Making minimum payments

Snowball method

Consolidating debts into a single loan

Individual lenders

The federal government

The Consumer Financial Protection Bureau (CFPB)

Credit reporting agencies (Equifax, Experian, TransUnion)

The long-term nature of significant debts

Using debt strategically to reduce tax liability

Being trapped in a high-interest loan cycle

Relying on debt to achieve major milestones like homeownership

Contact the creditor to request a correction

File a police report for potential identity theft

Notify the credit reporting agency

Wait to see if it resolves automatically

It should be your first step if debt exceeds 30% of your income

It erases all debts at no cost

It remains on your credit report indefinitely

It significantly lowers your credit score

Evaluating loan eligibility for banks

Collecting overdue debts for creditors

Cosigning loans to reduce borrower risk

Providing financial guidance and creating debt management plans

Hire a credit counselor if debt becomes overwhelming

Focus only on paying off the smallest debt first

Make minimum payments on all debts while prioritizing the smallest balance

Make minimum payments on all debts while prioritizing the largest balance

Suspension of your driver’s license

Garnishment of wages or tax refunds

Loss of employment

Revocation of your passport

Automatic adoption of the cosigner’s credit score upon repayment

Late payments do not affect your credit

Discounts on future loans become available

Easier approval and potentially lower interest rates

Take a second job to make all payments

Negotiate a lower monthly payment with your lender

Stop paying your credit card bill temporarily to catch up

Cut non-essential expenses to prioritize payments

Negative credit marks are erased faster for young borrowers

A credit history is often required for renting apartments or obtaining loans

Accessing credit becomes more expensive with age

Credit scores are free for people under 25

The amount you deposit as collateral

Your credit score

The duration of your relationship with the bank

The total balance in all bank accounts

Credit Karma

WalletHub

AnnualCreditReport.com

CreditWise

Only high scores qualify for loans

It influences loan approval and interest rates

Low scores result in lower loan interest rates

It has little impact on financial decisions

A credit score includes all the details of a credit report

A credit report summarizes your financial goals

A credit report calculates your credit score automatically

A credit score is determined based on the credit report’s history