ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It heavily influences your approval for bank loans and credit cards
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it determines how much you will have top pay the government in taxes.
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Credit score is important for businesses and not individuals
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It is illegal to not have a credit score
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Detailed explanation-1: -One of the benefits of having a good credit score is that banks might offer you loans and credit cards at a lower interest rate. You can also get other benefits as well such as a discount on the processing fee and eligibility to get a higher loan amount.
Detailed explanation-2: -A credit score is usually a three-digit number that lenders use to help them decide whether you get a mortgage, a credit card or some other line of credit, and the interest rate you are charged for this credit. The score is a picture of you as a credit risk to the lender at the time of your application.
Detailed explanation-3: -Payment history is an important part of calculating your credit scores. Late, missed or delinquent payments can negatively impact credit scores and creditworthiness. Credit scores help lenders make decisions about loan approvals, loan terms and more.
Detailed explanation-4: -Because payment history is the most important factor in making up your credit score, paying all your bills on time every month is critical to improving your credit. Pay down debt.
Detailed explanation-5: -The primary factors that affect your credit score include payment history, the amount of debt you owe, how long you’ve been using credit, new or recent credit, and types of credit used. Each factor is weighted differently in your score.