Financial Literacy - Lesson 4

Which of the following statements about credit scores is TRUE?

• Credit scores reflect how likely individuals are to repay their debts

• Credit scores range from the low 300's to the mid 800's.

• Each person has three credit scores.

• All of the above

Which of the following is NOT TRUE of credit scores?

• Only the credit bureaus truly know how credit sores are calculated.

• Having a high score means you are more likely to repay debts.

• The more money you make, the higher your credit score.

• Your credit score can impact the car or home you buy.

Having a good credit score is important because:

• It can impact your ability to get a driver's license

• It can impact your ability to be approved for bank loans

• It can impact how much you will have to pay the government in taxes

• It can impact how much you will have to pay for college

Which action can hurt your credit score? 1. Paying your phone bill late. II. Taking the bus to work. III Maxing out several credit cards. IV. Using the Internet to pay your bills.

• I

• I and II

• I and III

• III and IV

All of the following make up the big three credit reporting agencies EXCEPT:

• Equifax

• TransUnion

• Experian

• Federal Reserve

Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car?

• Open a savings account at the local bank.

• Pay off his credit card balance each month.

• Test drive several cars before deciding which to buy.

• All are things he should do to increase or maintain his credit score.

Which of the following actions can NEGATIVELY impact your credit score?

• You disputed an item on your credit report.

• You forgot to pay the cable bill.

• You pay all your bills in cash.

• You use a small amount of your available credit.

Which is true of someone with a low credit score? I They probably make on time payments. II They may not be able to rent the apartment they want. III. They are move likely to miss a payment than someone with a high credit score.

• I

• II

• III

• II and III

Which of the following has NO impact on your credit score?

• You inquire about a credit card charge.

• You use a large percentage of your credit limit

• You opened several new credit cards last week.

• You send in your credit card payment a couple days late.

What can you do to make sure you have a healthy credit report?

• Review your credit report each year.

• Make sure everything on your credit report is correct.

• Dispute any errors you find on your report with your credit agency.

• All of the above.