Credit Score Quiz

What are the two most important factors in calculating your credit score?

• Payment history and types of accounts

• Amounts owed and length of credit history

• Payment history and total debt

• Length of credit history and new credit inquiries

All of the following would show up on a credit report EXCEPT...

• Salary of your current job

• Payment history of your car loan

• Credit card payment history

• Student loan activity

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

• Cancel his credit cards

• Make on-time payments

• Get a car loan

• Check his credit score

Kevin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?

• Always say 'credit' when asked 'credit or debit?' at a store

• Ask his parents to cosign a credit card or add him as an authorized user on their credit card

• Any time he borrows money from a friend or family member, be sure to pay it back promptly

• Take out some private student loans, even though he doesn't need them because he has grants and scholarships

Who tracks all of your credit information?

• Credit reporting agencies (Equifax, Experian and TransUnion)

• Federal government

• Consumer Financial Protection Board (CFPB)

• Lenders

What is the general timeline to establish your first credit score?

• As soon as you apply for a credit card or loan

• Six months after you first actively use your credit

• Once you pay all of your credit balances in full

• After one year of having a credit card

You find an error on your credit report: Your credit card account indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments. What should you do FIRST?

• Contact the credit card company to have them fix it

• Contact the credit reporting agency

• Wait a few weeks to see if it gets resolved

• Call the police to report the possible identity theft

Which of the following could have a NEGATIVE impact on your credit score if done in a short period of time?

• Paying your bills on-time

• Paying down balances on your credit card accounts

• Decreasing your utilization of credit

• Applying for multiple credit cards

What benefits do you receive by taking out a loan with a cosigner?

• You don’t get penalized for late payments

• You get a discount on future loans after this one is paid off

• You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit

• You automatically get the same credit score as the cosigner once the loan is paid off

Which response best completes the sentence "It's best to begin establishing credit when you're young because _______ "?

• Accessing credit only becomes more expensive as you get older

• Negative marks on your credit report go away faster for younger borrowers

• Credit scores are free for anyone under the age of 25

• You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card