A Picture of Credit

According to the graphic, which category has the largest impact on your FICO credit score?

• Amount Owed

• Payment History

• Length of Credit History

• Credit Mix

Answer explanation

Payment History has the largest impact on your FICO credit score, accounting for 35% of the score. It reflects your track record of making payments on time, which is crucial for lenders.

Fill in the blank: The 'Amount Owed' category makes up (a)   % of your FICO credit score.

Answer explanation

The 'Amount Owed' category does not directly contribute to your FICO credit score percentage. Instead, it is part of the overall credit utilization, which is a factor but not a specific percentage. Therefore, the correct answer is 0%.

Match the following FICO credit score categories with their correct percentage:

• 15%

• Payment History

• 10%

• New Credit

• 35%

• Length of Credit History

• 30%

• Credit Mix

• 10%

• Amount Owed

Having a mixture of different types of credit and using them responsibly is a good sign for lenders.

• True

• False

Answer explanation

True. A mixture of different types of credit, such as credit cards and loans, shows lenders that you can manage various financial responsibilities, which is a positive indicator of creditworthiness.

The 'Length of Credit History' category tells lenders:

• How long you have been using credit

• Your current income

• The number of credit cards you have

• Your employment history

Answer explanation

The 'Length of Credit History' category specifically indicates how long you have been using credit, which is crucial for lenders to assess your creditworthiness.

What does the number 831 represent in the image?

• The amount of money in your account

• Your credit score

• The number of accounts you have

• Your credit card limit

Answer explanation

The number 831 typically refers to a credit score, which is a numerical representation of your creditworthiness. It is not related to account balances, the number of accounts, or credit card limits.

According to the visual scale, which range does a credit score of 831 fall into?

• Poor

• Fair

• Good

• Exceptional

Answer explanation

A credit score of 831 is considered to be in the 'Exceptional' range, which typically starts from 800 and above. This indicates a very strong credit history and low credit risk.

Fill in the blank: One of the main differences between a credit score and a credit report is that a credit report will list your personal information, any accounts you currently have or have had, how much you owe on them, and whether or not they are in _________.

• good standing

• default

• collections

• bankruptcy

Answer explanation

A credit report details your accounts and their status. The correct choice, 'good standing', indicates that accounts are being managed well, contrasting with options like 'default' or 'collections', which imply negative statuses.

According to the visual scale in the image, which of the following is NOT a credit score range?

• Poor

• Fair

• Average

• Exceptional

Answer explanation

The credit score ranges typically include Poor, Fair, and Exceptional. 'Average' is not a recognized credit score range, making it the correct answer to the question.

According to the passage, what information does a credit report contain?

• Only your credit score

• Your personal information, accounts you have or have had, how much you owe, and whether accounts are in good standing

• Only your account balances

• Only your payment history

Answer explanation

A credit report contains comprehensive information including your personal details, accounts you have or have had, your outstanding debts, and the status of those accounts, making the second choice the correct answer.