PF Unit 5 - Managing Credit

Front

Which of the following situations is an example of responsibly taking on debt?
- Get a credit card but don't use it to avoid more debt
- Spend up to your credit limit each month
- Become an authorized user on an adult's card
- Make only the minimum payment each month

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Become an authorized user on an adult's card

Front

What is the connection between credit report and credit score?

Back

The information on your credit report determines/drives your credit score.

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How can you build a positive credit history as a college student?

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Become an authorized user on an adult's card

Front

T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.

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True

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

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You can get a copy of your credit report for free

Front

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

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Which banks issued your credit cards

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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

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You may have to file a dispute with each credit bureau

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How are a credit score and credit report related?

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A credit score is determined by the factors in your report.

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Where can you get a free copy of your credit report? Options: annualcreditreport.com, freecreditreport.com, getmycreditreport.com, creditreport.gov

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annualcreditreport.com

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Using the debt snowball method, you make...

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minimum payments on large loans; pay extra on small loans