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Reflecting on… The Credit Conundrum
LET’S PRACTICE
Name: _____________________________________________________________________________
Fee-Fi-Fo FICO ® Whenever you apply for a loan or a credit card, the potential lender will want to know about your credit history . They want to know how well you manage your debts. Creditors, like banks and finance companies, share information about you with independent companies called credit bureaus . The information goes into your credit report and you are assigned a FICO ® credit score . A higher credit score means you are more likely to repay your debts. A lower score will effect your ability to obtain credit. Your job: go to FICO ® ’s website (www.myfico.com) and answer the following questions. Hint: Most answers can be found under the “Learn About Scores” tab. 1. What information is included in a FICO ® credit report about a borrower’s personal identity ? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 2. In a FICO ® credit report, what are trade lines and what kind of information do they contain? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 3. What identifying information is included in a FICO ® credit report? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 4. Go to Facts and Fallacies . If you have a poor score, will that impact you for the rest of your life? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 5. Go to Payment History . List the factors that effect how much your score will decrease if you make a late payment. _ ______________________________________________________________________________ _ ______________________________________________________________________________ PRODUCT PREVIEW
Chapter 7 | The Credit Conundrum 126
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