Advanced Topics Midterm Review

What is considered a good credit score by most lenders?

• 500-600

• 600-700

• 700-750

• 750 and above

Which of the following factors does NOT affect your credit score?

• Your income level

• Your payment history

• The amounts owed

• Length of credit history

What is the most important factor in determining your credit score?

• Types of credit in use

• New credit

• Payment history

• Amounts owed

What range does the FICO score fall within?

• 300-850

• 400-900

• 500-950

• 600-1000

Why is it important to have a good credit score?

• It affects your ability to rent an apartment

• It determines your eligibility for certain jobs

• It influences the interest rates on loans and credit cards

• All of the above

How can you improve your credit score?

• By frequently applying for new credit cards

• By paying your bills on time

• By using the maximum limit on your credit card

• By closing old credit accounts

What is the impact of a low credit score?

• Higher interest rates on loans and credit cards

• Decreased chances of loan approval

• Difficulty in renting an apartment

• All of the above

How long does negative information (like late payments) stay on your credit report?

• 2 years

• 5 years

• 7 years

• 10 years

What percentage of your credit score is based on your payment history?

• 10%

• 20%

• 35%

• 50%

Which action can negatively affect your credit score?

• Checking your own credit score

• Applying for multiple credit cards at once

• Paying off a loan early

• Using less than 30% of your credit limit