Credit Unit Assessment Review

Which of the following situations is an example of responsibly taking on debt?

• Get a credit card but don't use it to avoid more debt

• Spend up to your credit limit each month

• Become an authorized user on an adult's card

• Make only the minimum payment each month

All of the following would show up on a credit report EXCEPT...

• Salary of your current job

• Payment history of your car loan

• Credit card payment history

• Student loan activity

Each of the following financial products will help you build a credit history EXCEPT...

• Secured credit card

• Debit card

• Auto loan

• Credit card

T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.

• True

• False

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

Which of the following does NOT contribute to your credit score?

• Your payment history

• Which banks issued your credit cards

• Your debt-to-credit ratio

• Length of credit history

Which of the following are BENEFITS to having a good credit score? (hint: choose 2 correct answers)

• You can get a higher return on your Retirement fund

• Higher interest rate on credit cards and loans

• Easier approval for rental apartments and houses

• Better car insurance rates Better car insurance rates

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

Which of the following statements comparing credit and debit cards is TRUE?

• Far more businesses accept credit cards than debit cards

• Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

• Credit card companies provide you with a monthly statement, while debit cards do not

• With debit cards, you're spending your own money at point of sale, while with credit cards, you're promising to pay back the money eventually

Why might someone have a thin file? (hint: choose 2 correct answers)

• They've had multiple lines of credit open for 15 years

• They only have 4 types of credit open

• The credit bureaus mistakenly think you have passed away

• You are relatively new to establishing credit