Credit Knowledge Quiz

How can users of credit compare costs of products?

• By guessing the interest rates

• By comparing annual fees and interest rates

• By asking friends for advice

• By choosing the first option available

Why do banking waiving interest and annual fees for a year make it more likely that you apply for a card?

• It makes the card seem more attractive

• It increases the card's interest rate

• It decreases the card's benefits

• It makes the card harder to obtain

Why does a down payment help limit the risk of the bank and make it more likely you get a loan?

• It shows the borrower has no money

• It reduces the amount of money borrowed

• It increases the loan amount

• It makes the bank more suspicious

What is the major scoring model used to calculate credit score?

• FICO

• ABC

• XYZ

• 123

What personal information do you submit on a credit application?

• Favorite color

• Access to financial records

• Pet's name

• Favorite food

What does a high credit score indicate about the borrower?

• They are a high risk

• They have poor financial habits

• They are a low risk

• They have no credit history

What does a low credit score indicate about the borrower?

• They are a low risk

• They have excellent financial habits

• They are a high risk

• They have a lot of savings

What is the range of credit scores in the FICO model?

• 100-500

• 300-850

• 200-700

• 400-900

List negative factors of credit.

• Late payments

• High credit score

• Low interest rates

• Regular payments

List types of high interest debt.

• Mortgage

• Credit card debt

• Student loans

• Car loans