Financial Math: Credit Score

The main purpose of a credit score is to: ​ (a)  

• to help lenders decide whether to lend you money
• to show how much money you have saved
• to measure your income and expenses

Credit score is a range of numbers that helps lenders decide whether to approve someone for a loan.

What is the lowest possible credit score a person can have?

​ (a)  

• 300
• 0
• 100
• 250

Credit score is a range of numbers that helps lenders decide whether to approve someone for a loan.

What is the highest possible credit score a person can have?

​ (a)  

• 850
• 300
• 900
• 1000

Match the following:

• 670-739

  Good

• You should be able to get approved for most loans and credit cards, and you should get good interest rates.

• 300–579

  Poor

• It will be hard to get approved for loans or credit cards, and you may have to pay higher interest rates.

• 580-669

  Fair

• You'll have no problem getting approved for loans and credit cards, and you'll get the best interest rates available.

• 740-799

  Very Good

• You might get approved for some loans and credit cards, but you may not get the best interest rates.

• 800-850

  Excellent

• You'll have an even easier time getting approved for loans and credit cards, and you'll get some of the best interest rates.

What are the three credit bureaus?

• Equifax

• TransUnion

• Experian

• Expedia

• Union Pacific

Label the credit score that most appropriately fits in this scenario.

a

b

780

570

How many times a year can you request a free credit report from each of the three credit bureaus?

Type your answer as an integer.

Organize these options into the right categories:

Groups:

(a) Ways to raise your credit score

,

(b) Myths of raising your credit score

,

(c) Ways to lower your credit score

• Only credit cards impact your credit score

• Missing payments

• Never check your credit report

• Defaulting on a loan.

• Pay your bills on time

• Keep your credit utilization high

• Applying for too many credit cards or loans.

• Having a short credit history.

• Bankruptcy

• Having too much debt

• Keep your credit utilization low

• Having different types of credit (like a mortgage, car loan, and credit card)

• Monitor your credit report

• Avoid applying for too many new credit accounts.

• Build a longer credit history.

Who could possibly check your credit score?

Select all that apply.

• Landlords

• Utility Companies

• Employers

• Mortgage Loan Officer

You can purchase your credit score directly from one of the three major credit bureaus (Experian, Equifax, or TransUnion).

​ (a)  

• True
• False
• Maybe