Credit Scores and Reports Answers

Miles and Nick each separately apply for and receive loans worth $5,000 apiece. Miles has a very good credit score, so his loan has an APR of 7.75%, compounded monthly. Nick’s credit score is rather low, so his loan has an APR of 13.10% interest, compounded monthly. If both of them repay their loans over a four year period, making equal monthly payments based on their own loan, how much more will Nick have paid than Miles? (Round all dollar values to the nearest cent.) a. $619.68 b. $267.50 c. $1,609.57 d. $1,070.00 Please select the best answer from the choices provided

Darryl just received his credit scores from the three major credit bureaus. His Experian score is 719, his Equifax score is 741, and his TransUnion score is 780. What is his mean credit score? (Round to the nearest whole point, if applicable.)a.719b.741c.760d.747

Of the following statements, which one or ones describe actions harmful to your credit score?I. Owing a lot of moneyII. Having many lines of creditIII. Making steady paymentsa.I and IIb.II onlyc.I and IIId.I only

Hal is going over the credit scores he received from the three major credit bureaus. He Experian score is 711, his Equifax score is 736, and his TransUnion score is 736. What is the mode of Hal’s credit scores? (Round to the nearest whole point, if applicable.)a.736b.728c.723d.There is no mode in this group.

You are a loan officer trying to decide which clients deserve your best rates. The table below shows the credit scores of several loan applicants.NameExperianEquifaxTransUnionKellin720783733Natasha699684784Edward789658782Lisa810679792Based on each applicant’s median credit score, who deserves your best interest rates?a.Kellinb.Natashac.Edwardd.Lisa

Tony is a loan officer. He determines his clients’ eligibility for loans and for good interest rates by using their credit scores. The scores of several clients are shown in the following table.NameExperianEquifaxTransUnionNeil726752822Paula634732771Jeff721760754Peter666716707Help Tony evaluate his applicants based on their mean and median credit scores.a.Jeff has the highest mean score, but Paula has the highest median score.b.Neil has the highest mean score, but Jeff has the highest median score.c.Neil has the highest mean score and the highest median score.d.Paula has the highest mean score, but Jeff has the highest median score.

Who can access your credit report?a.friendsb.employersc.neighborsd.teachers

Xavier is comparing the credit scores of people in his neighborhood. He compiled the scores he found into the table below. What is the median credit score in this group? (Round to the nearest whole point, if applicable.)763680776639845825776690829a.776b.758c.845d.737

What is a credit report?a.A credit report is a number representing your creditworthiness.b.A credit report is a detailed listing of your credit history.c.A credit report is a ranking which compares your creditworthiness to others.d.A credit report is a missed payment or other factor which negatively affects your credit.