Credit Quiz Prep

Having a low credit score can make it difficult to:

• secure an apartment lease

• obtain a car loan

• open a new credit card

• All answers are correct

Which of the following has the LARGEST impact on your credit score?

• Payment History

• Length of Credit History

• Types of Payments Used

• Amounts Owed

Having a good Credit score is important because...

• It can impact your ability to get approved for bank loans.

• It can impact whether you will be admitted to college.

• It can impact how much you will owe the government in taxes.

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

All of the following make up the big three Credit reporting agencies EXCEPT:

• TransUnion

• Experian

• Credit Karma

• Equifax

Which of the following statements about credit scores is TRUE?

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

• Each person has three credit scores.

• Credit scores reflect how likely individuals are to pay their debts.

• All answers are correct

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

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

• You use a large portion of your credit limit

• You opened several new credit cards last week.

• You inquire about a credit card charge

Your friend confides in you that they have a low credit score. What is the single best way for them to improve their score?

• Cancel their credit cards

• Check their credit score

• Get a car loan

• Make on-time payments

How can your credit score impact your financial situation?

• Consumers with high scores can borrow and those with low scores cannot

• Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

• Consumers with low scores get lower interest rates on loans than those with high scores

• It generally has no impact on your financial situation

Each of the following financial products will help you build credit history EXCEPT:

• Home mortgage

• Credit card

• Debit card

• Secured credit card

Which of these credit card payback strategies would result in your paying the HIGHEST amount of interest?

• Paying 20% of your credit card balance every month on time

• Paying off your credit card bill in full every month

• Making the minimum payment (3% of your credit card balance) every month with an occasional late payment

• Making the minimum payment (3% of your credit card balance) every month on time