Smart Credit 101

What is credit?

• A tool to assist in building your financial future

• A method of paying for goods and services

• A bad thing to have

What is the credit score range?

• 200-700

• 300-850

• 400-900

Which of the following is not one of the five major factors that determine your credit score?

• Payment History

• Debt usage

• Length of credit history

• Number of credit cards

What percentage of your credit score does FICO claim is based on payment history?

• 10%

• 25%

• 35%

• 50%

What is credit utilization?

• The amount of credit limit your using

• The amount of credit limit you have available

• The amount of money you owe

How does debt usage impact your credit score?

• It has no impact

• it can increase your score

• it can decrease your score

• it has minimal impact

Which of the following is an example of an installment account?

• credit card

• student loan

• gas station card

• bus card

Which of the following is not a factor in determining the age of your credit accounts?

• The number of accounts

• The type of accounts

• The average age of accounts

What is the difference between a hard inquiry and a soft inquiry?

• Hard inquiries do not affect your credit score, while soft inquiries do

• Soft inquiries do not affect your credit score, while hard inquiries do

• Both hard and soft inquiries affect your credit score negatively

What is the purpose of credit reporting?

• To make short term loans

• To assess your risk level and rates

• To gather and store credit data

• All of the above