Managing Credit- Unit Test

Payment history and types of accounts

Amounts owed and length of credit history

Payment history and total debt

Length of credit history and new credit inquiries

Reducing spending by canceling some of her streaming subscriptions

Taking extra shifts at work to increase her income

Making more than the minimum required payment on her debt

Applying for another credit card to use in case she runs out of cash paying off her debt

Only consumers with high scores are approved for credit

Consumers with low scores get lower interest rates on loans than those with high scores

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

It generally has no impact on your financial situation

Over the five year period, Jasmere and Frank will pay the same amount for the car loan

Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment

Jasmere's monthly payment on the loan will be about $100 more than Frank's payment

Lenders are not allowed to charge people different interest rates based on their credit scores

Snowball method

Make minimum payments

High rate method (Avalanche method)

Consolidate multiple debts into one new loan

Credit reporting agencies (Equifax, Experian and TransUnion)

Federal government

Consumer Financial Protection Board (CFPB)

Lenders

Your preferred payment method to pay for fixing the error

A list of all of your financial accounts and balances

An explanation of the mistake and any evidence you have supporting your claim

References from a non-family member vouching for your creditworthiness

Paying your bills on-time

Paying down balances on your credit card accounts

Decreasing your utilization of credit

Applying for multiple credit cards

Only make payments on your smallest debt first, then move on to your second smallest debt, and so on

Once your debt "snowballs" out of control, hire a certified credit counselor to help get your finances back on track

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the highest balance

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the lowest balance

Wages or tax refunds can be garnished

Passport revocation

Driver’s license suspension

Termination from your job

You don’t get penalized for late payments

You get a discount on future loans after this one is paid off

You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit

You automatically get the same credit score as the cosigner once the loan is paid off

Accessing credit only becomes more expensive as you get older

Negative marks on your credit report go away faster for younger borrowers

Credit scores are free for anyone under the age of 25

You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card

The borrower paid a $30 fee in February 2015

This borrower was never late with any of their credit payments

This borrower's most recent payment was $30

This borrower was 30 days late on their May 2015 payment

Your credit score

The amount of money you deposit into an account as collateral

The total amount of money across all your bank accounts

How long you’ve had an account with the bank

Salary of your current job

Payment history of your car loan

Credit card payment history

Student loan activity