Finance

University of Phoenix Material

Credit History Worksheet


Directions


Identify the following factor descriptions to their corresponding C of credit. Highlight, bold, or underline the correct answer.

  1. Jack and Jill want to buy a car. They are using another car for ___________ as a promise to pay.
    a) Capacity
    b) Capital
    c) Collateral
    d) Character
    e) Conditions

  2. Under these _______________, you may still be approved with a cosigner.
    a) Capacity
    b) Capital
    c) Collateral
    d) Character
    e) Conditions


  3. Henry has a history of not staying with a job for an extended period of time. Which of the C’s would a lender be looking at?
    a) Capacity
    b) Capital
    c) Collateral
    d) Character
    e) Conditions


  4. Madaline is a stay-at-home mom seeking to start a home-based business. She would need a cosigner in order to qualify for a loan. What other C’s might she need for this loan?
    a) Capacity
    b) Capital
    c) Collateral
    d) Character
    e) Conditions

  5. Lenders use a debt-payment-to-income ratio to evaluate this particular C.
    a) Capacity
    b) Capital
    c) Collateral
    d) Character
    e) Conditions



Credit Score


Resources:
    • Five C’s web page located at the following link: http://www.loanuniverse.com/credit.html.
    • Annual Credit Report website www.annualcreditreport.com.
    • Fair Isaac website (www.myfico.com).

Directions

Go to the Fair Isaac Co. website, www.myfico.com. Do not buy a credit score unless you choose to do so. For this activity, go to “Learn about scores”.   Review this page, and follow the link to “What’s in your score”. From this page, follow the links to learn more about credit scores.

Note: You do not have to share your personal credit score or other details in this worksheet.


Using what you have learned about credits scores and the Five C’s, respond to the following in 50-to 100-words each:



  1. When are the five...