SSPFL5 & SSPFL6

What is the primary purpose of a credit score?

• To determine your annual income

• To represent your creditworthiness to lenders

• To calculate your tax obligations

• To track your spending habits

Which factor has the highest impact on your credit score?

• Length of credit history

• Types of credit used

• Payment history

• Recent credit applications

What is the recommended maximum credit utilization ratio?

• 50%

• 75%

• 10%

• 30%

Which type of credit allows you to borrow repeatedly up to a limit?

• Installment credit

• Open credit

• Revolving credit

• Secured credit

What is collateral in the context of credit?

• Your employment history

• Your credit score

• Assets that secure a loan

• Your monthly income

When checking your credit report, how many free reports are you legally entitled to per year?

• One from each bureau

• Two total

• Four total

• One total

Which of the following is NOT a major credit reporting bureau?

• Experian

• TransUnion

• CreditKarma

• Equifax

What is the typical FICO score range?

• 200-700

• 300-850

• 400-900

• 100-800

Which of these would be considered a "hard inquiry" on your credit?

• Checking your own credit score

• Employer background check

• Applying for a new credit card

• Insurance quote request

What is the primary difference between Chapter 7 and Chapter 13 bankruptcy?

• Length of process

• Credit score impact

• Debt discharge vs. repayment plan

• Court requirements