Understanding Credit

The moment you take out a loan, you're starting to build your credit history.

• True

• False

A car loan doesn't count on your credit report.

• True

• False

Your credit score is directly related to your credit history.

• True

• False

Your credit score rarely changes.

• True

• False

With a credit score in the 300 to 600 range (select all that apply):

• getting a credit card or loan should be a piece of cake.

• you'll need to work hard to improve your score.

• getting a credit card will be a problem.

• you will pay more for credit (if you get it at all).

The more credit cards you have, the better your credit score.

• True

• False

Paying off credit card balances completely and then cancelling the card improves your credit score.

• True

• False

Credit reporting agencies (TransUnion, Equifax, Experian) can have inaccuracies in their reports.

• True

• False

A credit card is a type of loan.

• True

• False

If you sign for a debit card purchase, the funds clear your account faster.

• True

• False