Credit Test Review

What is the name given to the numerical rating that you receive based on your credit habits?

• Credit report

• Credit score

• Credit history

• Credit card

Over 90% of Americans aged 18 and older have a credit file and credit report.

• True

• False

Once you're delinquent on making a loan payment, it doesn't matter how soon you pay it, because the damage is already done, and the credit report just shows that it was late.

• True

• False

hich of these steps is NOT helpful in disputing inaccurate entries on your credit report?

• Locate receipts or other written proof that the data is not accurate

• Contact the credit bureau in writing via letter or the interne

• Contact the credit lender directly to dispute the claim

• Contact the bank where you have your checking account

Which statement best describes the rules on receiving your credit report under the Fair Credit Reporting Act?

• You're entitled to one free credit report from either Transunion, Equifax, or Experian each year

• You're entitled to one free credit report from each of Transunion, Equifax, and Experian each year

• You're entitled to one free credit report from each of your credit card companies and loan holders each year

• You should receive a credit report, automatically, in the mail each month

Why do potential lenders frequently request to see your credit report before allowing you to borrow money?

• It allows them to see exactly what you purchase on a regular basis, so they can assess your character

• It's the only way they can legally see how much you have in your bank accounts

• It allows them to assess your creditworthiness by reviewing where you went to college, where you work, and how much you've paid, so far, in taxes

• It allows them to assess how much current debt you have and how responsible you've been in making payments on existing debt

Which will most likely cause your credit score to drop the most?

• Paying a bill on-time

• Missing a payment

• Requesting a copy of your credit report

• Increasing your credit limit on your credit card

Applying for multiple loans or credit cards can cause a drop in your credit score even if you never take out the loan or add a credit card.

• True

• False

What is the most reliable way to improve your credit score?

• Pay ALL your bills on time

• Borrow more money on each of your credit cards

• Increase the credit limit on your credit card

• Review your credit report annually

You're about to open a new credit card. Which best describes the relationship between your credit score and the interest rate you'll likely be offered by the credit card company?

• If your credit score is high, your interest rate will be high

• If your credit score is high, your interest rate will be low

• Your credit score will approximately match your interest rate

• There is no relationship between credit score and interest rate