Credit Score Part 1

What is another name for your credit score?

• Credit risk index

• Credit evaluation index

• FICO score

• Credit limit

A high credit score is better than a low credit score.

• True

• False

Name one way a good credit score can benefit you.

• Better loan rates

• Better car insurance rates

• Better job opportunities

• All of the above

Bank of America issues you a credit card with a maximum balance of $1000. This is an example of a

• finance charge

• secured card

• minimum payment

• credit limit

A high credit score means you will have higher interest rates.

• True

• False

Which of the following components counts the most when determining your credit score?

• Debt to available credit ratio

• Length of credit history

• Payment history

• Number of credit cards you have

Revolving lines of credit count more towards you credit score than installment loans.

• True

• False

What would be an ideal debt-to-available-credit ratio?

• at least 50%

• at least 33%

• at most 50%

• at most 33%

How could opening several new credit accounts at the same time affect your credit score?

• It help because it means I can handle a lot of credit.

• It hurts because it means I did not have enough credit.

• It helps because now I have enough credit.

• It hurts because it looks like I cannot pay my bills.

Which is the best way to carry an $8000 debt?

• On a single account with a $16000 credit limit.

• Split evenly across two accounts with $9000 credit limits each.

• Split into thirds across three accounts with $8000 credit limits each.

• On a single account with an $8000 credit limit.