NGPF 5.4 Building Credit from Scratch | Baamboozle - Baamboozle

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NGPF 5.4 Building Credit from Scratch

Study Slideshow

How long does it take to establish your first credit score?

about 3 months

about 2 years

about 1 year

about 6 months

15

Which of the following actions is NOT a way your credit score may be used

leasing an apartment

opening a savings account

buying a car

getting a cell phone

15

How does opening a checking account with a bank help you build credit even though it doesn’t directly impact your credit score?

allows you to establish a relationship with the bank and show a pattern of responsible financial management.

15

What is a secured credit card?

a type of credit card that is backed by a cash deposit from

it's the same as a debit card

15

The person who cosigns for you is impacted because they become responsible for the debt if you fail to make payments.

False

True

15

If you have a co-signer, you are still required to make the payments on a loan.

False

True

15

All of the following purchases can be impacted by your credit report EXCEPT…

Applying for a mortgage to buy a house

Getting your own cell phone plan

Leasing an apartment

Buying a TV with cash

15

Jane needs a cosigner for her loan. Which person would be the best for her to ask to be her cosigner?

Her grandfather, who lives on a tight budget

Her cousin, who has several fancy cars and must be rich

Her sister, who shows her she has a credit score of 735

15

How does the interest rate on a loan compare for someone with excellent credit compared to someone with poor credit?

Interest rates are the same regardless of credit score

Interest rates are lower for someone with excellent credit

15

What is the credit score scale?

100 to 1,000

0-100

300 to 850

15