PF: Chapter 4 Lesson 3 Credit Scores and Credit Reports

What is a credit score?

• A three-digit number that indicates how likely someone is to repay debt

• A report card for your credit history

• A measure of how well you handle money

• An indicator of your wealth and success

Which company calculates the FICO score?

• Experian

• TransUnion

• Equifax

• Fair Isaac Corporation (FICO)

What information do credit bureaus gather and sell to creditors?

• Income and savings

• Credit history

• Debt repayment habits

• Financial assets

What does a FICO score primarily focus on?

• How well you handle money

• Your income and savings

• Your debt history and repayment

• Your financial assets

Do you need a credit score to survive financially?

• Yes, it is essential for financial survival

• No, it is not necessary for financial survival

• Yes, if you plan to take on more debt

• No, if you are debt-free

How often can you request a free copy of your credit report from each credit bureau?

• Once every 6 months

• Once a year

• Once every 2 years

• Once every 5 years

Why is it important to monitor your credit report regularly?

• To build up your credit score

• To spot signs of fraud or identity theft

• To increase your income and savings

• To track your financial assets

What should you do if you find errors or suspect identity theft in your credit report?

• Contact the credit bureaus and report the suspicious activity to your bank and credit issuers

• Ignore it as it won't affect your credit score

• Pay a fee to get it corrected

• Request a new credit report from a different bureau