Managing Credit

What factors are used to calculate a credit score?

• Income, employment history, and education level

• Age, gender, and marital status

• Number of social media followers

• Payment history, credit utilization, length of credit history, credit mix, and new credit

Which of the following is NOT a loan repayment strategy?

• Paying off the loan in full

• Taking out a new credit card

• Making regular payments on the loan

• Refinancing the loan with a lower interest rate

What is the purpose of monitoring your credit report?

• To track your spending habits.

• To apply for a loan.

• To improve your credit score.

• To keep track of your financial history and identify errors or fraudulent activity.

Which of the following factors can negatively impact your credit score?

• Closing credit card accounts, having a high income, and having a long credit history

• Late payments, high credit card balances, and collections

What is the recommended credit utilization ratio?

• Below 30%

• Above 50%

• Below 10%

• Between 30% and 50%

Which of the following is a good strategy for improving your credit score?

• Opening multiple credit cards

• Ignoring bills and debt

• Paying bills on time and reducing credit card debt

• Maxing out credit cards

What is the purpose of a credit report?

• To determine an individual's political affiliation

• To provide information about an individual's criminal record

• To provide a detailed summary of an individual's credit history and creditworthiness.

• To track an individual's medical history

Which of the following is NOT a factor in calculating your credit score?

• Payment history

• Credit card usage

• Debt level

• Income

What are some strategies for managing credit effectively?

• Making minimum payments on credit cards, keeping credit card balances high, taking on unnecessary debt, rarely checking credit reports, and using credit irresponsibly.

• Ignoring credit card payments, keeping credit card balances high, taking on as much debt as possible, never checking credit reports, and using credit irresponsibly.

• Making payments on time, keeping credit card balances low, avoiding unnecessary debt, regularly checking credit reports, and using credit responsibly.

• Paying bills late, maxing out credit card balances, taking on unnecessary debt, never checking credit reports, and using credit irresponsibly.

What is the importance of making payments on time?

• To maintain a good credit score, avoid late fees and penalties, and build trust with creditors.

• To ensure that your financial obligations are met, avoid legal consequences, and demonstrate responsibility in managing your finances.

• To receive discounts and rewards for timely payments, avoid negative marks on your credit report, and maintain a good relationship with creditors.

• To improve your credit score, avoid late fees and penalties, and establish a positive payment history.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5