ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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paying more for an item than it originally cost
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paying for a semester at college
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buying a safer vehicle
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items could be repossessed if payments are not made on time
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buying a new home
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Detailed explanation-1: -One of the most common scores used by mortgage lenders to determine creditworthiness is the FICO® Score (created by the Fair Isaac Corporation). FICO® Scores help lenders calculate the interest rates and fees you’ll pay to get your mortgage.
Detailed explanation-2: -There are three types of credit accounts: revolving, installment and open. One of the most common types of credit accounts, revolving credit is a line of credit that you can borrow from freely but that has a cap, known as a credit limit, on how much can be used at any given time.
Detailed explanation-3: -Lenders score your loan application by these 5 Cs-Capacity, Capital, Collateral, Conditions and Character. Learn what they are so you can improve your eligibility when you present yourself to lenders.
Detailed explanation-4: -Standards may differ from lender to lender, but there are four core components-the four C’s-that lender will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.