Credit Score and Building Credit

What is a credit score?

• B. A 3-digit number that indicates your ability to repay loans

• C. A score given by banks to determine your savings potential

• D. A rating of your financial responsibility based on your income

How are credit scores similar to grades on a report card?

• A. They both reflect your intelligence

• B. They both determine your eligibility for scholarships

• C. They both summarize your performance in a specific area

• D. They both measure your physical fitness

Why is it best to have a PRIME credit score?

• A. It allows you to get discounts on purchases

• B. It increases your chances of winning the lottery

• C. It helps you qualify for lower interest rates on loans

• D. It gives you access to exclusive credit card rewards

What are 5 factors that affect a credit score?

• A. Payment history, capacity, length of credit, new credit, mix of credit

• C. Age, gender, race, nationality, marital status

• D. Social media activity, shopping habits, favorite color, zodiac sign, shoe size

How old do you have to be before you can open up your own credit card account with a co-signer?

• A. 16 years old

• B. 18 years old

• C. 21 years old

• D. There is no age restriction

Getting a co-signer when you turn 18 is an easy way to open a credit card and start building credit

• True

• False

Once you turn 18, if you choose one of the 4 options for accessing credit, how will you be sure you use that credit responsibly?

• A. Open up a checking and savings account first

• B. Create a budget and practice sticking to the plan

• C. Only purchase something when you have enough funds to cover it

• D. All of the above

Which of the following actions can increase a credit score?

• A. Making on-time payments

• C. Opening many lines of credit in a short time span

• D. Late payments

Which of the following actions can decrease a credit score?

• A. Making on-time payments

• B. Low credit utilization ratio

• C. Longer credit history

• D. Opening many lines of credit in a short time span

Why is keeping a good credit score important?

• A. It allows you to get discounts on purchases

• B. It increases your chances of winning the lottery

• C. It helps you qualify for lower interest rates on loans

• D. It gives you access to exclusive credit card rewards