Credit reports
General 1
General 2
Credit scores 1
Credit scores 2
100
How many free credit reports can you request each year?
Three- one from each major Bureau
100
Which of the following is a potential consequences of not paying your debts?
- Lender can file bankruptcy on your behalf
- You are turned down for new loans
- Lose your job
- Collection agencies begin visiting your friends and relatives to collect your debt
- You are turned down for new loans
100
Which of the following would NOT appear on a credit report?
- Salary of your current job
- Payment history of your car loan
- Credit card payment history
- Student loan activity
- Salary of your current job
100
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
- Make on-time payments
100
What is the relationship between a credit score and credit report?
- There is no relationship
- The information in your credit report is used to calculate your credit score
- Credit scores are updated annually while your credit report is updated weekly
- Credit scores are less important than your credit report
- The information in your credit report is used to calculate your credit score
200
Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?
200
You’re paying your credit card bill and your student loan payment each month, but you’re falling behind on your auto loan payment. Which friend’s advice could have a NEGATIVE impact on your credit score?
- Joanie says, “Call the auto lender and see if you can negotiate a lower monthly payment or some other deal.”
- Debbie says, “Stop making the credit card payment for a few months until you’re caught up on the auto loan.”
- Angie says, “Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family.”
- Betty says, “Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential.”
- Debbie says, “Stop making the credit card payment for a few months until you’re caught up on the auto loan.”
200
Which of the following will help you begin developing a credit history before you graduate from college.
- Always say "credit" when asked "credit or debit?" at a store
- Make small payments on your student loans while in college, even though they are not required to be paid back until you leave
- Any time you borrow money from your parents, friends, or family, be sure to pay it back promptly
- Be sure to keep a bit of your paycheck in a savings account instead of a checking account
- Make small payments on your student loans while in college, even though they are not required to be paid back until you leave
200
Each of the following is likely to check your credit score EXCEPT?
- Credit card companies
- Auto loan lenders
- Landlords
- Federal student loan office
- Federal student loan office
200
How can your credit score impact your financial situation?
- Consumers with high scores can borrow and those with low scores cannot
- Consumers with low scores get lower interest rates on loans than those with high scores
- Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
- It generally has no impact on your financial situation
- Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
300
I forget to pay my credit card bill one month. How long will that payment information show up on my credit report?
- Once I make the payment, it will disappear
- One year
- Seven years
- Ten years
- Seven years
300
Based on this snapshot of a credit report shown below, which of the following statements is TRUE?
- The borrower has never missed a payment
- The borrower has never used their credit card
- The borrower was 30 days late with his credit card payment during the month of February in 2007
- The borrower used his credit card for the first time during the month of February in 2007
The borrower was 30 days late with his credit card payment during the month of February in 2007
300
Sam is carrying a balance on his credit card of $500. The credit limit on the card is $1,500. What is his utilization rate?
- 0%
- 3%
- 33%
- 50%
33%
500/1500= percentage of his allowable credit he is using
300
What are the two most important factors in calculating your credit score?
- Payment history and type of account
- Amounts owed and length of credit history
- Payment history and amounts owed
- Length of credit history and new credit inquiries
Payment history and amounts owed
300
You have a credit card and want to know the best way to use it to boost your credit score. Which step will have the greatest impact?
- Not using more than 30% of the credit limit on your card and paying it off in full every month by the due date
- Spend up to the full credit limit on your card and pay off the bill in full every month on time
- Make the minimum payment required on your credit card every month by the due date
- Put the credit card in a drawer and don't ever use it
- Not using more than 30% of the credit limit on your card and paying it off in full every month by the due date
400
Who tracks all of your credit information?
- Companies named Equifax, Experian and TransUnion
- Federal government
- Consumer Financial Protection Board (CFPB)
- Lenders
- Companies named Equifax, Experian and TransUnion
400
According to the Equal Credit Opportunity Act, which of the following factors CAN a lender legally use to charge you a higher interest rate.
- Your age, if you’re under 21
- Your credit score
- The percentage of your income that comes from Social Security payments
- Your marital status, if you are single
- Your credit score
400
Which is the LEAST DESIRABLE option to choose if you are struggling with debt and need help learning to manage your finances?
- Certified credit counselor
- Federal Trade Commission consumer information
- Consumer Financial Protection Bureau
- Debt settlement company
- Debt settlement company
- Here's a summary of why using a debt settlement company is risky and likely to make your finances worse:
- You may sign away the ability to speak for yourself. ...
- Debt settlement companies can't always settle 100% of your debt. ...
- It can hurt your credit score. ...
- The money you saved could be considered taxable income
400
A lender checking Jason’s credit score for an auto loan would likely notice that...
- His savings account has more than $3000 in it
- He paid off a car loan after making every payment for 4 years
- When he stopped paying his credit card for 3 months 9 years ago
- The credit scores of his family, including his parents and his wife if he is married
- He paid off a car loan after making every payment for 4 years
400
Which of the following could have a NEGATIVE impact on your credit score?
- Paying your bills on-time
- Paying down balances on your credit card accounts
- Decreasing your utilization of credit
- Applying for multiple credit cards in a short period of time (e.g., a week)
Applying for multiple credit cards in a short period of time (e.g., a week)
500
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
500
Dora has a home currently worth $150,000, for which she still owes $75,000 on her mortgage. She has $8,000 in student loan debt and $10,000 in credit card debt. She likes to keep a large emergency fund, so she has $15,000 in a savings account. Her annual salary this year will be $64,000. What is Dora’s net worth?
- $72,000
- $-14,000
- $136,000
- $-78,000
$72,000
500
What general conclusion can you draw from this bar graph?
- Credit scores tend to drop as you grow older because you are more likely to miss a payment at some point
- It is more difficult for young people to borrow (i.e., get a loan) because they have less payment history for a lender to rely upon
- When young people borrow, they are likely to have lower interest rates because their credit scores are lower
- It is easier for young people to get loans at lower interest rates because they are likely to have never been late with a payment
- It is more difficult for young people to borrow (i.e., get a loan) because they have less payment history for a lender to rely upon
500
This snapshot from a credit report shows _____________.
- A history of on-time payments
- Each time John has filed for bankruptcy
- All the accounts John has opened since age 18
- The companies or individuals who have requested John’s credit report
The companies or individuals who have requested John’s credit report
500
Frank and Jasmere are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?
- Over the five year period, Jasmere and Frank will pay the same amount for the car loan
- Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment
- Jasmere's monthly payment on the loan will be about $100 more than Frank's payment
- Lenders are not allowed to charge people different interest rates based on their credit scores
Jasmere's monthly payment on the loan will be about $100 more than Frank's payment