Credit_2_SS10.key - Credit continued When am I in trouble?...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Credit continued • When am I in trouble? • What is the maximum I should be spending on credit payments? Credit Ratios Debt payment to disposable income Debt payments Disposable income = .16 - .20 Example Kellogg Co. $40,000 gross income Payroll taxes -$8,000 Disposable income $32,000 net income Monthly income /12 Monthly disposable income $2,666 Multiply by .16 $426. Multiply by .20 $533. I-Clicker credit review question Joe is asking Pat to marry him on Valentine’s Day next month. What item would be the most appropriate to place on his credit card? A. Flowers B. Dinner C. Ring Credit Bureaus Equifax Transunion Experian
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Credit Bureau data Fair Isaac and COmpany FICO Credit Score 550 600 650 700 750 800 850 50% FICO Score • 35% Payment History • 30% Amounts owed • 15% Length of credit history • 10% Taking on more debt? • 10% Types of credit used Payment History 35% • Pay your bills on time. • Types of credit
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/24/2010 for the course FCE 238 taught by Professor Boyce during the Spring '07 term at Michigan State University.

Page1 / 6

Credit_2_SS10.key - Credit continued When am I in trouble?...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online