Credit History Review

Multiple Choice

Your ability to borrow is based on the lender's belief that you will __________________. 

• repay your debt
• make more money
• extend your loan
• apply for another loan

Multiple Choice

Why is it important to have a positive credit history?

• It can earn you a higher interest rate on a loan.

• It will affect your ability to buy a house or car.

• It will allow you to be able to skip payments on your credit card.

• It will allow you to pay just interest and not principal amount on a loan.

Multiple Choice

What is a student loan?

• A college savings account

• A loan you have to pay back with interest.

• Money awarded to a student that they don't have to pay back.

• A bank account

Multiple Choice

How can you establish a positive credit history?

• Paying your bills on time

• Buying stuff with cash only

• Paying less than the minimum payment

• Maxing out your credit card

Multiple Choice

Which is true about credit cards?

• When you use a credit card, the money is pulled from your checking account.

• There is no interest on credit cards.

• You have to make monthly payments on your credit card.

• There is not a limit on credit cards.

Multiple Choice

An amount of money given to you for college based on performance, such as academics or athletics.

• Grant

• Student Loan

• Scholarship

• Savings

Multiple Choice

Credit Card is

• a card that allows you to pay the balance over a period of time, subject to interest

• a card that immediately deducts funds from your checking account

Multiple Choice

Debit Card is

• a card that allows you to pay the balance over a period of time, subject to interest

• a card that immediately deducts funds from your checking account

Multiple Choice

What is a deposit?

• an addition of money into a bank account

• moving money from one account to another

• the removal of money from a bank account

Multiple Choice

What is a transfer?

• an addition of money into a bank account

• moving money from one account to another

• the removal of money from a bank account

Multiple Choice

What is a withdrawal?

• an addition of money into a bank account

• moving money from one account to another

• the removal of money from a bank account

Credit History

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Poll

How well do you know credit history?

• 1 (not much at all)

• 2

• 3

• 4

• 5 (Expert)

Using Lenders

At some point, you are going to want to buy something BIG, and you won’t have enough money to pay for it all at once. We’re not talking about the newest iPhone, but a car or a house. Most people have to go through a lender to purchase things when they don’t have enough money to buy them outright. A lender is typically a bank. You borrow the money with a credit card or through a loan. By using a lender, you can buy the big item and pay back what you owe slowly.

Lenders are more likely to grant money to a person they believe can pay them back. If you have good credit, you won’t have a hard time borrowing money. But if you have bad credit, it might be difficult. To find out what kind of credit you have, lenders will look at your credit report.

Multiple Choice

A person would most likely need to use a lender in order to...

• buy milk at the grocery store.

• buy the newest iPhone.

• apply for a credit card.

• buy a house.

Credit Report

A credit report is a record of money you've borrowed. It’s updated monthly and lists the amount of debt you carry, your repayment history and any problems you’ve had with your debt.

Credit reports include your credit score. Your borrowing history contributes to your score, and the number of times you’ve requested the report also contributes. Some lenders see a lot of credit report requests and get suspicious. It could mean you’re desperate and keep getting denied because your credit is poor.

Your credit score is a number that ranges from 300 to 850. Technically, it’s called your FICO score. It’s named for the company that created the software that generates the score. If your score is higher than 750, it will be easier to borrow money and to do so at low or fixed interest rate. If your score is 640 or lower, borrowing money becomes harder and more expensive.

Multiple Choice

A person with a credit score of ________ would have the easiest time borrowing money.

• 700

• 800

• 300

• 720

Raising your credit score

How do you raise your credit score? First, pay your bills on time. Second, if you are in debt, get a plan to have that resolved as soon as you can. What lowers your score? Making late payments or missing payments altogether and going into delinquency. Keeping debt that is more that 30% of your credit limit is also bad for your credit score, so don’t max out your credit cards. However, reasonable debt is good for your score.

If you never borrow money and don’t have a history of credit, and a history of paying it back responsibly, lenders don’t know that you’re financially responsible, and you will have a hard time getting approved for a loan or a line of credit. To build good credit, get a credit card and use it to purchase things that you can afford. Always pay the full balance each month, on time.

Multiple Choice

If Lily wants to build her credit, she should

• get a credit card, purchase things with it, and pay the full balance each month, on time.

• get multiple credit cards, purchase things with all of them, and only one of their bills each month.

• borrow money from her parents or friends.

• save up money so she can buy big purchases in cash.

Who else looks at your credit?

Banks aren’t the only people who will check your credit; landlords usually look at it to determine whether you’re financially trustworthy, and future employers might consult it when they’re deciding whether or not to hire you. Your credit history will affect many aspects of your adult life.

You can check your credit report for free once a year. Just visit annualcreditreport.com, and you can see what banks, lenders and other financial institutions see when they run a credit check on you. This will help you understand where you stand with lenders, and it can help you figure out what to do to raise your score. Additionally, you should check to see if the information they have is accurate. If it’s not, you can work to correct any mistakes that might affect your borrowing power. By taking advantage of this free information, you have better control over your credit history—and future.

Multiple Choice

If Chiwan’s credit card applications keep getting denied, he should check his credit report. This will help him

• automatically re-apply for credit cards.

• figure out how to raise his credit score.

• erase his credit card debt.

• hide any history of bad credit.

Multiple Choice

When you pay all your bills on time, you are showing good:

• Character

• Capital

• Collateral

• Capacity

• Conditions

Multiple Choice

A steady job and regular income is referred to as:

• Character

• Capital

• Collateral

• Capacity

• Conditions

Multiple Choice

Which one of these would NOT be used to repay a debt?

• Income

• Owned Property

• Collateral

• Character References

• Conditions

Multiple Choice

What is an asset?

• Anything Owned that has a monetary value.

• A tool used to improve your credit.

• A type of credit card.

• Your Credit history.

Multiple Choice

What is a dependent?

• Someone who can't do anything.

• Someone who relies on an others income.

• The opposite of pendent.

• Someone who supplies their income.

Multiple Select

Choose the two best ways to build a credit history:

• always pay in cash

• establish a steady work record

• pay all your bills on time

• bounce checks in your checking account

Multiple Choice

Choose the two options that WON'T help you build credit history:

• Use your savings to buy items instead of using credit

• make regular payments in a savings accounts

• apply for a local store credit card and pay regularly

• get a co-signer to pay back your loans

Multiple Choice

What is the connection between a credit report and a credit score?

• They are basically the same thing

• The information from your credit report is what determines your credit score.

• Your credit score determines what information is on your credit report.

• If you have a lot of accounts on your credit report you automatically have a high credit score.

Multiple Choice

How long do financial records remain on your credit report?

• 7 years

• 10 years

• 7 to 10 years

• Forever

Multiple Choice

Which of the following information would you NOT expect to find on a credit report?

• History and track record of paying bills

• Opened/Closed accounts

• Late payments

• Credit inquiries

• Your investments

Multiple Select

Select two reasons explaining why it’s important to request your 3 credit reports and review them regularly.

• To see if you should apply for a new credit card

• To see if there is someone else using credit under your name (identity theft)

• To check your credit score

• To see if there are any errors

Multiple Choice

Which of the following people/companies DO NOT have reason to access your credit report?

• Credit Card companies

• Employers

• Your ex boyfriend/girlfriend

• Landlords

• Government agencies and courts

Multiple Choice

Which of the follow would NOT show up on your credit report?

• Late payment on your credit card of 30 days

• A closed personal loan

• A credit inquiry from an auto dealer

• Late rent payment of 10 days

• Unpaid medical bills that have gone to collections

Multiple Select

What are the big 3 credit bureaus?

• Innovis

• Experion

• Equifax

• Transunion

• Fico

Multiple Choice

How often can you get a free copy of your credit report?

• 1 time per year

• every 6 months

• Whenever you want

• You always have to pay

Multiple Choice

Which of the following is TRUE about a credit report?

• 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

Multiple Choice

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

Multiple Choice

Where can you get a free copy of your credit report?

• annualcreditreport.com

• freecreditreport.com

• getmycreditreport.com

• creditreport.gov

Multiple Choice

What information can you find on a credit report?

• Your medical insurance information

• Your parents' and siblings' contact information

• Your education level

• Inquiries you've made on new lines of credit

Multiple Choice

All of the following may access your credit report EXCEPT...

• A landlord

• A future employer

• Colleges and universities

• Insurance companies Insurance companies

Multiple Choice

If you review your credit report and find an error, and you’re able to prove it is, indeed, an error, how long does the credit bureau have to remove the error?

• 30 days

• 1 year

• 6 months

• 60 days

Multiple Choice

The most important section of your credit report is your trade lines -- the details about each of your credit accounts. Which of the following is NOT a piece of information found in this section?

• Name of the creditor/lender

• Your home address

• Account or other identifier for the type of credit being provided

• The parties responsible for paying the loan

• The payment status of the account.

Multiple Choice

What is the first step in Disputing a credit report error with a credit bureau?

• Decide

• Investigate

• Dispute

• Identify

• Notify

Multiple Choice

Which of these does not appear on a credit report?

• Address
• open accounts
• late payments
• income

Multiple Choice

Which of these is a reason to establish a positive credit score?

• Lower Interest Rates
• Discounts on goods
• Receive a higher Income

Multiple Choice

How long is most information retained on your credit report?

• 2 years
• 5 years
• 7 years
• 10 years

Multiple Choice

Is having no credit a good thing?

• yes
• no

Multiple Choice

Which of these is not a way to build your credit score?

• Make payments on time
• close all your accounts
• Avoid opening too many accounts
• Pay at least the minimum each month

Multiple Choice

Which of these are not a way to begin your credit?

• Opening "bills"
• taking out a loan
• Getting a credit card
• Paying for everything with cash

Multiple Choice

How do you get credit inquiries on your credit report?

• A lender ask for a copy of your credit report
• You ask for your credit report
• You ask for your credit report for a lender
• All of these

Multiple Choice

Is your employment information used to determine your credit score?

• yes
• no

Multiple Choice

If someone has a score of 500, how is their credit?

• Excellent
• Great
• Good
• Very Poor

Multiple Choice

Can employers use your credit score when determining employment?

• no, they can not see your score
• yes, they can use it

Multiple Choice

What does a positive credit history tell lenders?

• That a person has managed their money responsibly.

• That a person has NOT managed their money responsibly.

Multiple Choice

What does a negative credit history tell lenders?

• That a person has managed their money responsibly.

• That a person has NOT managed their money responsibly.

Multiple Choice

Which of the following could positively affect your credit history?

• Taking out more money than you can pay back.

• Paying bills consistently and on time.

• Paying a bill late.

Multiple Select

Which of the following could negatively affect your credit history?

• Paying bills late.

• Maxing out limits on credit cards.

• Paying bills consistently and on time.

Multiple Select

Who looks at your credit history?

• Employers

• Your best friend

• Banks

• Your dog

Multiple Choice

What happens is you have a positive credit history?

• You will have a lower interest rate.

• You will have a higher interest rate.

Multiple Choice

What happens is you have a negative credit history?

• You will have a lower interest rate.

• You will have a higher interest rate.

Multiple Choice

Your credit history can be found in a --

• Credit Report

• Credit Thingy Mabob

• Credit Store

Multiple Select

What information CAN be found in a credit report?

• Loans you have taken out and their balances

• The amount of money you owe your mom

• The amount of money in your piggy bank

Multiple Choice

What information can NOT be found in a credit report?

• Previous employers

• Cash purchases

• Credit inquiries

• Date of Birth

Multiple Choice

How long do credit inquiries remain on your credit report?

• 2 years

• 5 years

• 7 years

• 10 years

Multiple Choice

How long does negative information (late payments, foreclosures, bankruptcy, etc.) stay on your credit report?

• 1-2 years

• 3-4 years

• 7-10 years

• 15-20 years