ECONOMICS
CREDIT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
That you make a lot of money
|
|
|
That you have many credit cards
|
|
|
That you are easy to trust with a loan or credit card
|
|
|
None of the above
|
Detailed explanation-1: -Having good credit means that you are making regular payments on time, on each of your accounts, until your balance is paid in full. Alternately, bad credit means you have had a hard time holding up your end of the bargain; you may not have paid the full minimum payments or not made payments on time.
Detailed explanation-2: -Lenders have specific criteria they’ll want you to meet but having a good credit score usually means you’ll be more likely to be accepted. That’s because your score gives lenders an indication of how well you manage money and if you’ll be able to afford to repay the money you borrow.
Detailed explanation-3: -Lenders may use credit scores to evaluate loan qualification, credit limit and interest rate. For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent.
Detailed explanation-4: -A strong credit score-760 and above-may give you important financial advantages, including access to more options, lower interest rates, and more lender choices.
Detailed explanation-5: -Key Takeaways. Creditworthiness is how a lender will tell if you will default on your debt obligations. Creditworthiness is determined by several factors including your repayment history and credit score. Improving or maintaining your creditworthiness is as simple as making your payments on time.