UNIT 12-CREDIT AND CREDIT CARDS-TEST

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Which component represents the most significant percentage in credit score calculation? Options: Total debt amount, Payment history, Credit card types, Recent inquiries

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Payment history

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If a young adult consistently pays bills 30 days late, how would this likely impact their credit score?

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Significant score reduction

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An authorized user on a credit card primarily represents:

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Someone permitted to use another's credit card

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Long-term bankruptcy consequences most likely include: Immediate credit score improvement, No financial restrictions, Reduced future lending opportunities, Guaranteed loan approvals

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Reduced future lending opportunities

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Interest fundamentally represents:

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A fee for borrowing money

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A "good" credit score range typically falls between:

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670-850

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The primary difference between credit and debit cards is:

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Money source (borrowed vs. personal)

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Building credit history for a young adult might best involve: Becoming an authorized user on a responsible person's account

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Becoming an authorized user on a responsible person's account

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The Schumer Box primarily provides:

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Detailed credit card terms

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Payment history impacts credit scores by demonstrating:

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Reliability in meeting financial obligations