Managing Credit

Front

A key factor influencing credit scores is: Recent inquiries, Monthly expenses, Martial status, Education level

Back

Recent inquiries

Answer explanation

Recent inquiries into your credit history can negatively impact your credit score. This factor reflects how often you seek new credit, which lenders view as a risk. Other options like monthly expenses and education level do not directly affect credit scores.

Front

All of the following are part of a credit report EXCEPT: Spending Habits, Loan Repayment, Credit Limit Utilization, Current Credit Inquiries

Back

Spending Habits

Answer explanation

A credit report includes details like loan repayment, credit limit utilization, and current credit inquiries, but it does not include spending habits, which are personal financial behaviors not reflected in credit reports.

Front

A cosigner on a loan can help by:

Back

Boosting approval odds

Answer explanation

A cosigner can significantly improve the chances of loan approval by providing additional assurance to lenders, as they share the responsibility for repayment. This is why 'Boosting approval odds' is the correct choice.

Front

Which of the following is TRUE about a credit report?
Options:
It is a complete history of one type of credit you have
Credit reports are maintained by the 5 main credit bureaus
You can get a copy of your credit report for free
You can get a credit report only when you're 21 years old

Back

You can get a copy of your credit report for free

Answer explanation

You can get a copy of your credit report for free, which is true. This is a right granted to consumers, allowing them to check their credit history without charge. The other statements are incorrect.

Front

Which of the following does NOT contribute to your credit score?
Your payment history,
Your debt-to-credit ratio,
Length of credit history

Back

Which banks issued your credit cards

Answer explanation

Your credit score is influenced by factors like payment history, debt-to-credit ratio, and length of credit history. However, the specific banks that issued your credit cards do not affect your credit score.

Front

Establishing credit early can help with: Quick loan approvals, Higher credit card limits, Avoiding yearly credit checks, Getting better interest rates

Back

Getting better interest rates

Answer explanation

Establishing credit early can lead to better interest rates because lenders view a longer credit history as a sign of reliability, which can result in lower rates on loans and credit products.

Front

Which of the following is TRUE about finding errors on your credit report? You may have to file a dispute with each credit bureau , You should wait until the end of the month before reporting , Finding errors is common & is not a big deal , Overlooked errors may result in you paying a fine

Back

You may have to file a dispute with each credit bureau

Answer explanation

You may have to file a dispute with each credit bureau because errors can appear on different reports. It's important to address inaccuracies with each bureau individually to ensure your credit report is corrected.

Front

The main advantage of a secured credit card is:

Back

Improving credit score

Answer explanation

The main advantage of a secured credit card is that it helps improve your credit score. By making timely payments and maintaining a low balance, users can build or rebuild their credit history effectively.

Front

Why might older individuals typically have higher credit scores?

Back

They have longer credit histories.

Answer explanation

Older individuals typically have longer credit histories, which positively impacts their credit scores. A longer history demonstrates responsible credit use over time, leading to higher scores compared to younger individuals.

Front

How often should you check your credit report for errors?

Back

At least once a year

Answer explanation

You should check your credit report at least once a year to identify and correct any errors. This helps maintain a good credit score and ensures your financial information is accurate.