CREDIT REPORT

Use pages 148-153 t answer the questions below. These questions will go in section 3.2 of
your portfolio.
1. What are the 3 Cs of Credit? Capacity,Character,and collateral.
2. Give examples of each of the 3 Cs of Credit. Do you have a steady job? Have you used
credit before? Do you have a checking account?
3. What is the importance of a Good Credit Rating? Is being able to pay for bills on time
4. What is a credit report? A credit report is when you paid for something its tell you what
its and whats not paid for
5. What are the three largest credit bureaus? Why are they important? Equifax,

Experian, and TransUnion. These bureaus are all publicly-traded, for-profit

companies who are not owned by the government. However, the government
does have legislation, the Fair Credit Reporting Act, regarding how these and
other credit bureaus should operate.
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9.

What does FICO stand for?Fair Isacc Corporation

What is the FICO score range? 87%
Describe the relationship between a FICO score and delinquency rate.
How is your FICO score calculated? Include percentages. by 8% they evaluate loan
applicants.
10. How can you improve your credit score?
Pay your bills on time. Delinquent payments and collections can have a major negative impact on a credit score.
Keep balances low on credit cards and other "revolving credit." High outstanding debt can affect a credit score.
Apply for and open new credit accounts only as needed. Dont open accounts just to have a better credit mix. It
probably wont improve your credit score.
Pay off debt rather than moving it around. Also, dont close unused cards as a short-term strategy to improve your
credit score. Owing the same amount but having fewer open accounts may lower your credit score.