· Which of the following likely has the highest credit score? Bob has 5 credit cards, credit utilization of 40% , and a perfect payment history for 5 years; George has 3 credit cards, credit utilization of 29%, an installment loan, a mortgage, a perfect payment history for 3 years. Tim has 2 credit cards totaling a $50,000 limit.
Transcribed image text: QUESTION 83 Of the following four individuals, who is likely to have the highest credit score? O Jed has 5 credit cards and a gas card, credit utilization of 40 % , and a perfect payment history for five years. Fred has 2 oredit cards totaling a …
· Good: 670-739. Very good: 740-799. Excellent: 800+. Improving your scores from 740 to 790 will likely have little effect on your interest rate offers since both scores fall in the …
Which of the following likely has the highest credit score? Bob has 5 credit cards, credit utilization of 40% , and a perfect payment history for 5 years Credit agencies do not collect any …
The highest credit score you can get with the two main scoring models is 850. If you don’t have perfect scores today, don’t panic. Very few people do. As long as your scores are within what the three major consumer credit bureaus consider the highest range, you’ll be in a good position to qualify for the best interest rate offers on loans and mortgages.
Pay your bills on time. The frequency of your on-time payments is the factor that influences your scores the most. Setting up automatic payments on your credit card bills can be a helpful way to avoid forgetting a payment, but make sure you have enough money in your accounts to cover automatic payments.
As you spend less of your available credit, your credit utilization rate goes down. In the above example, if you reduced your credit card spending to $500, your utilization rate would drop to 10%.
To determine your current utilization rate, begin by adding up the credit limits of all your credit cards. Let’s say you have two credit cards — one with a limit of $2,000 and another with a limit of $3,000. This gives you $5,000 of total available credit.
FICO uses percentages to indicate the importance of each factor to your credit scores.
Perfect credit scores can seem to be inexplicably out of reach. Out of 200 million consumers with credit scores, the average FICO score is 704. And FICO saysthat as of April 2019, just 1.6% of Americans with credit scores had perfect FICO scores.
But moving your scores from 650 to 700 could mean getting lower interest rate offers .
Credit scores indicate the likelihood an individual will repay his/her debt. We have an idea of how the scores are calculated, but only the credit bureaus know the exact calculation.
The more money you make, the higher your credit score.
Maxing out your credit cards will typically lower your credit score.
A credit score between 500 and 600 means a consumer would most likely: find it easy to get a loan. find it hard to get a loan. get a loan with low payments. get a loan with low interest. Find it hard to get a loan. Both mortgages and auto loans: are riskier for lenders. are riskier for borrowers.
a person with a credit score of 650 with a large amount of available credit who has a low-paying, but steady job. a person with a credit score of 600 with a small amount of available credit who has recently switched to a high-paying job.
Secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object. Unsecured credit is backed by an asset equal to the value of a loan, while secured credit is not guaranteed by a material object.