Meaning of Credit Scores-10-14-2025

Multiple Choice

Why do you think understanding credit scores and reports is important for consumers?

• Because it helps in getting loans and credit cards

• Because it affects your ability to rent an apartment

• Because it can impact job opportunities

• All of the above

Open Ended

How would you define a credit score?

Multiple Choice

Which of the following groups use your credit score to make decisions about you?

• Credit card issuers and lenders

• Auto insurers

• Employers

• All of the above

Open Ended

What is the range of FICO scores and what score is considered sub prime?

Multiple Choice

Based on the table, how does your monthly payment change as your credit score decreases from 760 to 620?

• Monthly payment decreases

• Monthly payment increases

• Monthly payment stays the same

• Monthly payment fluctuates unpredictably

Multiple Choice

Which factors make up more than half of your FICO score?

• Payment history and amounts owed

• Amounts owed and new credit

• Length of credit history and types of credit used

• Payment history and new credit

Open Ended

Explain why recency and frequency of late payments are important when considering your payment history for your FICO score.

Open Ended

Should credit score be the determining factor in all decisions?

Multiple Choice

Which of the following best describes the impact of outstanding balances on your credit score?

• It accounts for 30% of your credit score and compares total balance to total available credit.

• It is not considered in your credit score.

• It only matters if you have more than five credit cards.

• It is based solely on your income.

Multiple Choice

What does the length of your credit history refer to?

• The number of years you have used credit and how long since you have used certain accounts.

• The number of credit cards you own.

• The amount of money you owe.

• The number of loans you have paid off.

Open Ended

Explain how opening multiple new credit accounts in a short period can affect your credit score.

Open Ended

What do you think Mr. Howard is trying to convey about credit scores?

Open Ended

What do you think about credit scores?

Multiple Choice

Which of the following actions can help improve your credit score?

• Pay all bills on time

• Open new credit cards frequently

• Ignore delinquent bills

• Increase your total credit card debt

Open Ended

Based on the strategies shown in images 3 and 4, list two actions you should take and two actions you should avoid to improve your credit score.

Multiple Choice

Which of the following should you avoid to improve your credit score?

• Closing unused credit cards

• Paying bills on time

• Lowering your total credit card debt

• Paying delinquent bills

Multiple Choice

A score based on weighted categories, which are approximates here and include payment history (35%), amounts owed (30%), length of credit history (15%), new credit accounts (10%), and types of credit used (10%) is called a ...

• Payment score

• Debt to Income ratio

• FICO score

• Loan score

Multiple Select

Which students are most likely to have the lowest credit scores?

• Hassan has 3 credit cards with low balances and often forgets which one they need to make payments on and is late

• Bekkah has 2 credit cards and they’re usually near their credit limit

• Kareem has 3 credit cards that they pay in full every month and recently applied for a new line of credit

• Sarah has never had a credit card and has over $10,000 in her savings account

Multiple Choice

Which of the following is NOT a way to obtain your free annual credit report?

• Visiting annualcreditreport.com

• Calling 1-877-322-8228

• Ordering from TransUnion, Experian, or Equifax

• Paying a fee to each credit bureau

Multiple Select

Which types of information typically remain on a credit report for 7 years?

• Trade accounts like Sears, Macy's

• Judgments or liens

• Chapter 7 Bankruptcy

• Medical cases

Multiple Choice

How long does information about Chapter 7 Bankruptcy remain on your credit report?

• 7 years

• 10 years

• 5 years

• Indefinitely

Open Ended

After today's lesson, do you have any questions or would you like to know more about credit scores and reports?

Open Ended

What is one thing you learned today about credit scores and reports that you did not know before?