Unit 4 - Managing Credit

What are the two most important factors in calculating your credit score?

• Amounts owed and length of credit history
• Payment history and amounts owed
• Length of credit history and new credit inquiries

Which of the following would NOT appear on a credit report?

• Salary of your current job
• Payment history of your car loan
• Credit card payment history
• Student loan activity

Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?

• Freecreditreport.com
• getcreditreportshere.com
• annualcreditreport.com

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

• Cancel his credit cards
• Make on-time payments
• Get a car loan

Each of the following is likely to check your credit score EXCEPT?

• Credit card companies
• Auto loan lenders
• Landlords
• Federal student loan office

*Use the chart to answer!!* Frank and Jasmere are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?

• Over the five year period, Jasmere and Frank will pay the same amount for the car loan
• Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment
• Jasmere's monthly payment on the loan will be about $100 more than Frank's payment
• Lenders are not allowed to charge people different interest rates based on their credit scores

How can your credit score impact your financial situation?

• Consumers with low scores get lower interest rates on loans than those with high scores
• Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
• It generally has no impact on your financial situation

You have a credit card and want to know the best way to use it to BOOST your credit score. Which step will have the greatest impact?

• Not using more than 30% of the credit limit on your card and paying it off in full every month by the due date
• Spend up to the full credit limit on your card and pay off the bill in full every month on time
• Put the credit card in a drawer and don't ever use it

I forget to pay my credit card bill one month. How long will that payment information show up on my credit report?

• Once I make the payment, it will disappear
• Seven years
• One year

Who tracks all of your credit information?

• Companies named Equifax, Experian and TransUnion
• Federal government
• Lenders