Managing Credit

How can you build a positive credit history as a college student?

• Get a credit card but don't use it to avoid more debt

• Spend up to your credit limit each month

• Become an authorized user on an adult's card

• Make only the minimum payment each month

T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.

• True

• False

Which of the following is TRUE about a credit report?

• It is a complete history of one type of credit you have

• Credit reports are maintained by the 5 main credit bureaus

• You can get a copy of your credit report for free

• You can get a credit report only when you're 21 years old

Which of the following does NOT contribute to your credit score?

• Your payment history

• Which banks issued your credit cards

• Your debt-to-credit ratio

• Length of credit history

All of the following are benefits of having a good credit score EXCEPT...(hint: choose 2 correct answers)

• You can get a higher return on your Retirement fund

• Higher interest rate on credit cards and loans

• Easier approval for rental apartments and houses

• Better car insurance rates Better car insurance rates

Why might someone have a thin file? (hint: choose 2 correct answers)

• They've had multiple lines of credit open for 15 years

• They only have 4 types of credit open

• The credit bureaus mistakenly think you have passed away

• You are relatively new to establishing credit

How are a credit score and credit report related?

• A credit report is determined by the factors in your score

• A credit score is determined by the factors in your report

• Credit reports are less important than your credit score

• They're not related at all

Where can you get a free copy of your credit report?

• annualcreditreport.com

• freecreditreport.com

• getmycreditreport.com

• creditreport.gov

How can having a thin file impact you?

• You are likely to get lower interest rates on your loans

• You may be offered new lines of credit in the mail

• Lenders may decline your application for a loan

• Most landlords will approve you to rent an apartment or home

Jim is 23 and has 1 credit card. What would be the best way to improve his credit score? (hint: choose 2 correct answers)

• Get 4 more credit cards in the next 3 months

• Diversify his credit - get an loan for the car he needs

• Make sure he makes his payments in full & on time

• Increase his credit utilization rate