1. Which of the following statements about credit scores is TRUE?

a. Credit scores reflect how likely individuals are to repay their debts.

b. Credit scores range from the low 300’s to the mid 800’s.

c. Each person has three credit scores.

d. All of the above.

Answer: d. All of the above.

 

2. Which of the following statements are TRUE about credit scores?

A. Credit scores reflect how likely individuals are to repay their debts.

B. Only the credit bureaus know exactly how credit scores are calculated.

C. Both A & B

D. Neither A nor B

Answer: C. Both A & B

 

3. Having a good credit score is important because:

a. It can impact your ability to get a driver’s license

b. It can impact your ability to be approved for bank loans

c. It can impact how much you will have to pay the government in taxes

d. It can impact how much you will have to pay for college

Answer: b. It can impact your ability to be approved for bank loans

 

4. Which action can hurt your credit score?

I. Paying your phone bill late.

II. Taking the bus to work.

III. Maxing out several credit cards.

IV. Using the internet to pay your bills

I

I and II

I and III

III and IV

Answer: I and III

 

5. All of the following make up the big three credit reporting agencies EXCEPT:

Equifax

TransUnion

Experian

Federal Reserve

Answer: Federal Reserve

 

6. Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car?

a. Open a savings account at the local bank.

b. Pay off his credit card balance each month.

c. Test drive several cars before deciding which to buy.

d. All are things he should do to increase or maintain his credit score.

Answer: b. Pay off his credit card balance each month.

 

7. Which of the following actions can NEGATIVELY impact your credit score?

a. You disputed an item on your credit report.

b. You forgot to pay the cable bill.

c. You pay all your bills in cash.

d. You use a small amount of your available credit.

Answer: b. You forgot to pay the cable bill.

 

8. Which of the following actions has NO impact on your credit score?

a. You inquire about a credit card charge.

b. You use a large percentage of your credit limit.

c. You opened several new credit cards last week.

d. You send in your credit card payment a couple days late.

Answer: a. You inquire about a credit card charge.

 

9. What can you do it make sure you have a healthy credit report?

a. Review your credit report each year.

b. Make sure everything on your credit report is correct.

c. Dispute any errors you find on your report with your credit agency.

d. All of the above.

Answer: d. All of the above.

 

10. Which of the following MOST influences your credit score?

a. Types of Credit Used

b. Payment History

c. Length of Credit History

d. Amounts Owed

Answer: b. Payment History

 

11. Which best explains what a credit score represents?

a. A number showing how likely you are to have more than one credit card.

b. A numerical rating that expresses how likely you are to repay your debts.

c. A numerical rating that shows how much money you have in your bank account.

d. A number expressing your yearly income.

Answer: b. A numerical rating that expresses how likely you are to repay your debts.

 

12. Which of the following actions would improve your credit score?

a. Closing out old credit cards

b. Paying off your credit card bill

c. Using a large portion of your credit limit

d. Opening a new savings account

Answer: b. Paying off your credit card bill

 

13. In which of the following situations is having a good credit score important?

a. Buying a car.

b. Applying for a loan at a bank.

c. Renting an apartment.

d. All of the above.

Answer: d. All of the above.

 

14. How many free credit reports are you legally entitled to each year?

a. One credit report each year

b. Three credit reports each year

c. One credit report from each credit bureau

d. Three credit reports from each credit bureau

Answer: c. One credit report from each credit bureau

 

15. Having a low credit score can make it more difficult to:

a. Obtain a car loan

b. Open a new credit card

c. Secure an apartment lease

d. All of the above

Answer: d. All of the above

 

16. Which behaviors might lead someone to have a low credit score?

a. Missing a car payment.

b. Having a long credit history.

c. Always baying the full balance of a credit card each month.

d. Having a debit card.

Answer: a. Missing a car payment.

Very Poor Credit Score

Answer: BELOW 500 , seek

Poor credit score

Answer: 500-579 if your introits rate is high you may not qualify for loans at all

Fair Credit score

Answer: 580-620

Okay credit score

Answer: 620-679

Good Credit score

Answer: 680-700 would qualify for MOST loans

Excellent Credit Score

Answer: 700+ qualify for BEST loan terms and interest rates

How can you boost ur Credit Score and avoid a low one in the 1at place?

Answer: By PAYING your Bills ON TIME and managing what you barrow responsibly

What financial behaviors will typically lead to a low credit score?

Answer: Maxed out Credit Cards

Payment History

Answer: A history of the payments you have made on all credit you have obtained, which affects your credit score. Tracks such things as whether or not you pay your bills on time, 

whether or not you always pay at least the minimum amount, etc. ( 35%)

Amounts Owed

Answer: PPl who use less of their available credit, considered lower risk

Length of Credit History

Answer: -0.15

New Credit

Answer: rated based on the number of recently opened accounts and the number of recent credit inquiries

Types of credit used

Answer: number of various types of accounts (credit cards, loans, mortgages, etc.)

Which of the following factors will have the greatest impact on your credit score? I. Length of Credit History II. Payment History III. Amounts Owed IV. Types of Credit Used

Answer: II (Payment History) III ( Amounts Owed

Credit Report Info:

Answer: Name , address, and Social Security number on the TOP of the report.

Public Records

Answer: Lists info that’s available, includes things like Court Judgements and bankruptcy filings

Potentially Negative Items

Answer: Unpaid accounts and late payments and may stay on ur record UP to 7 Years.

Payment History

Answer: includes On Time and Late Payment of ur debts

Accounts in Good Standing

Answer: Have been reported to the credit bureau(s) as paid on Time and in FULL.

Soft Inquiry

Answer: Occurs when someone runs a background check on your credit like when ur starting @ a new job and DOESN’T affect ur Credit Score.

Hard Inquiry

Answer: Occurs when someone checks ur Credit History to make a lending decision.

Did you know?

Answer: Every year ur entitled to one credit report from each of the credit BUREAUS for a total of 3 Free reports a year.

Which is LEAST important to maintaining a healthy credit score?

Answer: Knowing your EXACT Credit Score

Excellent Credit Score

Answer: Preferred Interest rate of 13% {720}

Fair Credit Rate

Answer: Land higher Interest Rate of 23% {620}

Which of the following actions has NO impact on your credit score?

Answer: You inquire about a credit card charge.

Which of the following MOST influences your credit score?

Answer: Payment History

Which of the following statements about credit scores is TRUE?

Answer: All of the above.

Which of the following actions would improve your credit score?

Answer: Paying off your Credit card bill

Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car?

Answer: Pay off his Credit Card Balance each Month

Having a good credit score is important because:

Answer: It can impact your ability to be approved for bank loans

In which of the following situations is having a good credit score important?

Answer: All of the above.

Which behaviors might lead someone to have a low credit score?

Answer: Missing a car payment

Which of the following actions can NEGATIVELY impact your credit score?

Answer: You forgot to pay the cable bill.

If your credit reports show different scores, what should you do?

Answer: Get in touch with credit bureaus to see if they have different or inaccurate info on your credit history

Having a good credit score is important because: 

A. It can impact your ability to get a driver’s license B. It can impact your ability to be approved for bank loans C. It can impact how much you will have to pay the government in taxes D. It can impact how much you will have to pay for college

Answer: B. It can impact your ability to be approved for bank loans

Which of the following is true of a person with a high credit score? 

A.They are more likely to pay bills on time. B.They are less likely to pay off debts. C.They probably have a high balance on multiple credit cards D.Both B and C are correct.

Answer: A.They are more likely to pay bills on time.

Which of the following actions has NO impact on your credit score? 

A.You inquire about a credit card charge. B.You use a large percentage of your credit limit. C.You opened several new credit cards last week. D.You send in your credit card payment a couple days late.

Answer: A.You inquire about a credit card charge.

Which of the following actions can NEGATIVELY impact your credit score?

 A.You disputed an item on your credit report. B.You forgot to pay the cable bill. C.You pay all your bills in cash. D.You use a small amount of your available credit.

Answer: B.You forgot to pay the cable bill.

Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car? 

A.All are things he should do to increase or maintain his credit score. B.Pay off his credit card balance each month. C.Open a savings account at the local bank. D.Test drive several cars before deciding which to buy.

Answer: B.Pay off his credit card balance each month.

Which behaviors might lead someone to have a low credit score? 

A.Always paying the full balance of a credit card each month. B.Missing a car payment. C.Having a long credit history. D.Having a debit card.

Answer: B.Missing a car payment.

Which of the following MOST influences your credit score?

 A.Types of Credit Used B.Payment History C.Length of Credit History D.Amounts Owed

Answer: B.Payment History

How many free credit reports are you legally entitled to each year?

 A.One credit report each year B.Three credit reports each year C.One credit report from each credit bureau D.Three credit reports from each credit bureau

Answer: C.One credit report from each credit bureau

Which of the following is NOT true of credit scores? 

A.Having a high score means you are more likely to repay debts. B.The more money you make, the higher your credit score. C.Only the credit bureaus truly know credit scores are calculated. D.Your credit score can impact the car or home you can buy.

Answer: B.The more money you make, the higher your credit score.

In which of the following situations is having a good credit score important?

 A. Applying for a loan at a bank. B. Renting an apartment. C. Buying a car. D. All of the above.

Answer: D. All of the above.

If your credit reports show different scores, what should you do? 

A. Visit your local bank and have them fix it for you. B. Research online to see how you can get into the system and fix it yourself. C. Nothing, the credit bureaus will recognize the mistake and fix it for you. D. Get in touch with credit bureaus to see if they have different or inaccurate information on your credit history.

Answer: D. Get in touch with credit bureaus to see if they have different or inaccurate information on your credit history.

What is the purpose of credit scores?

Answer: to tell how reliable you are on paying back credit

How many credit scores does a person have?

Answer: 3

What is the range for credit scores?

Answer: 300-850

What is the purpose of keeping a good credit score?

Answer: To be accepted for loans, lines of credit, and for buying houses, cars, etc.

What types of actions can hurt your credit score?

Answer: missing/late payments, maxing out credit card, opening too many lines of credit

What types of actions can help your credit score?

Answer: Always paying on time, only using small amounts of credit, having a good long credit history

What are the three big credit reporting agencies?

Answer: Equifax, Experian, TransUnion

How can having a low credit score impact you?

Answer: You can be denied lines of credit, denied loans, denied to buy a car, house, etc.

What has the most impact on your credit score?

Answer: Payment history

How many times per year can you get a free credit report from each bureau?

Answer: Once

What should you do if there are errors on your credit reports?

Answer: Immediately contact the credit bureau that has the credit score that is the most off