Credit Score Quizzing
Which is better? A high or low credit score?
High.
Answer both: What is Payment History and how can it affect a Credit Score?
Record of past credit payments & delinquencies. Good history = High Score.
When should you apply for your first credit card?
As soon as you can, or 18 years old. Since that's the earliest.
What is the percentage of people that use credit in America?
82% (will accept anything from 77%- 87%)
Should you try and build a good credit from a young age?
Yes, it is very beneficial later.
When taking a loan with a high credit score, will your interest rate be high or low?
Low.
Answer all: Does Amount Owed refer to present or past debts and does it include multiple credit accounts? How does this affect a Credit Score?
Present, and yes. Less owed = Better Score.
Is it possible to use Revolving Credit to buy a house?
No, absolutely not.
How often should you check your credit score and credit report?
At least 4 times a year.
What is the biggest thing a lender looks for when determining interest rates?
Credit score, which is why you should start building good Credit.
When taking a loan with a low credit score, will it be easy or difficult to get the loan?
Difficult.
Answer both: What is Length of Credit History? How can this affect a Credit Score?
Time you’ve been using Credit. Good behavior & Long History = Good Score
Should you borrow for a spending spree?
No.
What is considered a good credit utilization ratio?
Anything at or below 30%.
What is a thin file on your credit report?
A lacking credit history, as in small or little information.
How will regularly paying your bills by the minimum amount affect your Credit Score?
Negatively.
Answer both: What is New Credit? How does this affect a Credit Score?
When you apply for more Credit. Opening Credit Accounts = Subtraction on Credit Score
Where are 3 places you can borrow money?
The Government(Student Loan), Auto Dealer(Auto Loan), Depository Institution(Mortgage/Personal Loan), etc.
How do you calculate your credit utilization rate?
Sum of all your balances, divided by the sum of your card credit limits. Ex. you have 2 credit cards each with a limit of $250, and you owe 25 on each. Its 50/500 or 10%
What's the best thing you can do to build good credit at a young age?
Be knowledgeable, understand the basics of credit.
What can you do to improve a credit score?
Paying bills on time and in full.
Answer both: What is Credit Mix? How can this affect a Credit Score?
Proof you know how to handle both(revolving & installment) kinds of credit. Both types present = Better Credit
When is it a good idea to take on large credit?
Emergencies and large purchases (appliances).
How can you check your credit score?
Visit AnnualCreditReport.com, which will then link you into 1 of the 3 major reporting agencies.
Why do you not want a thin file?
You will find it difficult to be approved for a loan, or it may even be hard to determine your credit score.