Managing Credit

Front

What are the 3 C's of Credit?

Back

Character, Capacity, Capital.

Front

Define 'Character' in the context of credit.

Back

Character refers to a borrower's willingness and reliability to repay a debt, often assessed through credit history.

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

Front

What does 'Capacity' mean in credit management?

Back

Capacity refers to a borrower's ability to repay a loan, based on income and financial stability.

Front

Explain 'Capital' in relation to credit.

Back

Capital refers to the borrower's assets or net worth that can be used to repay a loan.

Front

What impact does applying for multiple credit cards have on your credit score?

Back

Applying for multiple credit cards in a short period can negatively impact your credit score.

Front

How can a young person begin establishing a credit history?

Back

A young person can establish credit history by having a parent cosign a credit card or adding them as an authorized user.

Front

What factors are considered to qualify for credit?

Back

Qualifications for credit are based on income, capital, and collateral.

Front

Why is it important to pay bills on time?

Back

Paying bills on time helps maintain a good credit score and demonstrates reliability to lenders.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is the relationship between credit utilization and credit score?

Back

Lowering credit utilization (the ratio of credit used to total credit available) can positively impact your credit score.

Front

What is a credit score?

Back

A credit score is a numerical representation of a borrower's creditworthiness, based on credit history and behavior.