Lets say your roommate forgot to pay a cable bill. It was entirely his fault, but your name is on the bill. The following statement is true or false. This late payment will affect your credit score.

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Let’s say your roommate forgot to pay a cable bill. It was entirely his fault, but your name is on the bill. The following statement is true or false. “This late payment will affect your credit score.”

A	True
B	False
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -Creditworthiness = A measure of one’s ability and willingness to repay a loan. Credit rating/score = A measure of creditworthiness based on an analysis of the consumer’s financial history, often computed as a numerical score, using the FICO or other scoring systems to analyze the consumer’s credit.

Detailed explanation-2: -A credit score is dynamic and can change positively or negatively depending upon how much debt you accrue and how you manage your bills. The factors that determine your credit score are called The Three C’s of Credit-Character, Capital and Capacity.

Detailed explanation-3: -Capacity: This refers to your ability to repay the debt. The lender will look to see if you have been working regularly in an occupation that is likely to provide enough income to support your credit use.

Detailed explanation-4: -Every Nigerian is entitled to one free Credit report every year from any registered Nigerian Credit Bureau. To get a free credit report in Nigeria, use any of the following sources: Dial the USSD code *565*8# on your mobile phone to get instant Credit reports from CRC Credit Bureau.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

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