Classwork 4.16

Calculate the average credit history for Jack based on the credit cards below:

Credit card 1: 8 years

Credit card 2: 4 yeas

Credit card 3: 4 years

Credit Card 4: 2 years

Add up the total number of years and divide by the number of cards

• 18

• 4.5

• 16

• 12

Jack has a credit card bill of $2500 and a credit card limit of $4500.00.

What is the percent of his credit card utilization?

Round to the nearest ones place.

Amount on card/credit card limit x 100

• 55.6 %

• 55.5%

• 40%

• 25%

True or False

Amounts owed (credit utilization) is a large part of the credit score

• False

• True

True or False

Ayesha's credit utilization is at 70%.

Is she overspending?

• Yes

• No

True or False

Payment history (no late payments) is a large portion of the credit score

• True

• False

A number assigned to a person that indicates how likely they are to repay a loan.

• Credit score

• credit report

• credit limit

• statement closing date

The amount of credit a person is using compared to their credit limit.

• credit utilization

• credit score

• credit report

• hard credit check

A request by a bank or other institution to view a person’s credit report

• credit limit

• credit report

• hard credit check

• credit score

If you want to ensure you have a good credit rating, you should keep your credit card utilization______

• Below 20%

• Below 30%

• Below 100%

• Below 50%

How many times a year can you get a free credit report?

• 2 times a year; semi-annually

• 4 times a year; every quarter

• once a year

• once every month; 12 times a year