Credit Score Quiz

What are some factors that can affect your credit score?

• Number of social media followers, frequency of online shopping, number of pets owned

• Payment history, credit utilization, length of credit history, types of credit used, and new credit inquiries.

How can you improve your credit score?

• Pay bills on time, reduce credit card balances, limit new credit applications, keep old accounts open, and check credit report regularly.

• Pay bills late, increase credit card balances, apply for new credit frequently, close old accounts, and never check credit report

Why is having a good credit score important?

• Having a good credit score is important because it allows individuals to access better loan terms, but it doesn't affect interest rates or credit limits.

• Having a good credit score is important only for buying a house, but it doesn't affect other aspects of life like renting an apartment, getting a job, or obtaining insurance.

• Having a good credit score is not important because it has no impact on loan terms, interest rates, or credit limits.

• Having a good credit score is important because it allows individuals to access better loan terms, lower interest rates, and higher credit limits. It also helps in renting an apartment, getting a job, and obtaining insurance at lower rates.

What are some ways to check your credit score?

• Request a free credit report from each of the three major credit bureaus once a year at AnnualCreditReport.com.

• Visit a credit counseling agency to obtain your credit score.

• Call your bank and ask them to provide your credit score.

• Check your credit score by logging into your online banking account.

What is a common misconception about credit scores?

• Having a lot of credit cards will improve your credit score.

• Checking your own credit score does not negatively impact it.

• Checking your own credit score can lower it.

• Credit scores are only based on income.

Name one factor that can negatively impact your credit score.

• High credit utilization

• Closing old credit accounts

• Applying for multiple new credit cards

• Late payments

What is the recommended credit utilization ratio?

• 70%

• 50%

• 30%

• 10%

How long does negative information stay on your credit report?

• Forever

• 7 years

• 10 years

• 3 years

What is the first step to take if you find an error on your credit report?

• Dispute the error with the credit reporting agency

• Ignore the error and hope it goes away

• Contact the creditor directly

• Contact the credit reporting agency

True or False: Closing a credit card can improve your credit score.

• Closing a credit card can only improve your credit score if you have a high balance

• Closing a credit card has no impact on your credit score

• False

• True