Credit Scores and Reports

Question 1

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.)

Revolt · Accepted Answer

$619.68

Question 2

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.)

Revolt · Accepted Answer

747

Question 3

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 payments

Revolt · Accepted Answer

I and II

Question 4

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.)

Revolt · Accepted Answer

736

Question 5

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?

Revolt · Accepted Answer

Lisa

Question 6

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.

Revolt · Accepted Answer

Neil has the highest mean score, but Jeff has the highest median score.

Question 7

Who can access your credit report?

Revolt · Accepted Answer

employers

Question 8

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.)763680776639845825776690829

Revolt · Accepted Answer

776

Question 9

What is a credit report?

Revolt · Accepted Answer

A credit report is a detailed listing of your credit history.

Credit Scores and Reports Answers

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