Components
This component has the largest impact on your score, making up 35% of the total.
What is Payment History
To maintain a "good" rate, you should keep your utilization below this percentage.
What is 30%
This type of credit card requires a cash deposit and is a great way for beginners to build credit.
What is a Secured Credit Card
Higher credit scores usually qualify a borrower for these, which saves them money over time.
What are Lower Interest Rates
Fact or Fiction: Checking your own credit score through a banking app lowers your score.
What is Fiction (soft inquiry)
This factor accounts for 15% of your score and explains why it's better to keep old accounts open.
What is Length of Credit History
If you have a credit limit of $1,000, this is the maximum amount you should spend to stay under the 30% rule.
What is $300
You can build credit by becoming this on a parent or guardian’s existing credit card account.
What is an Authorized User
This is the term for a person's "trustworthiness" in the eyes of a lender, represented by their score.
What is Creditworthiness
Fact or Fiction: You should check your full credit report at least once a year.
What is Fact
Opening too many of these in a short time can lower your score by 10%.
What is New Credit/Hard Inquiries
If your total limit is $2,000 and you have a balance of $1,000, your utilization rate is this percentage.
What is 50%
If you find an error on your credit report, you should do this immediately to fix your score.
What is Dispute it
Besides loans, name one thing a low credit score might make it difficult to do.
What is Rent an apartment or Get a Credit Card
Fact or Fiction: Paying a bill one day late will immediately destroy your credit score.
What is Fiction (though consistent late payments will hurt it over time)
Having a variety of accounts, like credit cards and car loans, makes up this 10% category.
What is Credit Mix
This is the definition of credit utilization: the ratio of your current debt to your total ____ ____.
What is Credit Limit
Name two of the three major credit bureaus that provide credit reports.
What are Equifax, Experian, or TransUnion
This is a responsible example of a loan you should only take out for "necessary tuition costs."
What is a Student Loan?
Fact or Fiction: You don't need to worry about credit until you are over 30 years old.
What is Fiction (length of history matters)
This is the specific percentage impact that Credit Utilization has on your overall score.
What is 30%
True or False: If you increase your credit limit but keep your spending the same, your utilization rate goes down.
What is True
This is the most responsible way to handle your credit card balance every single month.
What is Paying it off in full
A person with a 750 score will likely pay less total money for a car than a person with a 600 score because of this.
What is Total Interest Accrued
Fact or Fiction: You can check your credit score for free through many banking apps.
What is Fact