Understanding Credit Scores

What is a credit score?

• A numerical representation of a person's creditworthiness

• A type of bank account

• A financial statement

• A loan application form

What is the typical range of a credit score?

• The typical range of a credit score is between 300 and 850.

• The typical range of a credit score is between 200 and 900.

• The typical range of a credit score is between 100 and 800.

• The typical range of a credit score is between 400 and 950.

True or False: Higher credit scores indicate lower risk to lenders.

• True

• False

Who uses credit scores to affect health, auto, and life insurance rates?

• Lenders

• Landlords

• Employers

• Insurance Companies

Which companies may require a deposit for new accounts based on credit scores?

• Lenders

• Utility Companies

• Employers

• Cell Phone Providers

What percentage of your credit score is determined by Payment History?

• 10%

• 15%

• 30%

• 35%

Which factor contributes 15% to your credit score?

• A) Payment History

• B) Credit Utilization

• C) Length of Credit History

• D) New Credit

What can significantly lower your credit score?

• Missing payments

• Paying bills on time

• Having a long credit history

• Keeping credit card balances low

How long do hard inquiries stay on your credit report?

• One year

• Two years

• Three years

The most crucial factor in your credit score is:

• Payment history

• Credit utilization

• Length of credit history

• Types of credit used