Everfi Build Part 3: Managing Credit

What is the best definition of a credit report?

• A number that shows a snapshot of your credit at a specific moment in time

• A number that shows how much of your overall credit you're using

• A period of time between when you spend money and when the company charges you interest

• A history of how you pay back loans and credit cards

What is the best definition of a credit score?

• A period of time between when you spend money and when the company charges you interest

• A number that shows a snapshot of your credit at a specific moment in time

• A number that shows how much of your overall credit you're using. A history of how you pay back loans and credit cards

Which items do credit card and lending companies use to determine whether to lend you money or not?

• Your credit score

• Your credit bulletin

• Your credit discount

• Your credit dispatch

Which is the best way to lower credit utilization to an acceptable level?

• Increase your credit card balance

• Apply for more credit cards

• Decrease your credit card balance

• Close credit cards

Which credit utilization rate would be preferable to a lender on a credit card application?

• 27.5%

• 43.0%

• 76.3%

• . 83.0%

What is a good strategy if you want to improve your credit score?

• Increase your account balance

• Pay your credit card bills late once in a while

• . Overdrawing your bank balance

• Minimize new applications for credit

What habit lowers your credit score?

• Pay your bills late

• Decrease your credit card balance

• Schedule automatic bill payment

• Check your credit report

Which entries on a credit report will decrease your credit score?

• Bill paid on time

• Soft inquiries

• Late payments

• Current address

Why does higher credit utilization decrease your credit score?

• Because lenders feel that you are unreliable

• Because lenders are unsure of your ability to handle your account

• Because lenders think you are able to take on more debt

• . Because lenders feel that you can't handle more debt

What kind of credit inquiry has no effect on your credit score?

• A. A soft inquiry has no effect on your credit score

• Both hard and soft inquiries have an effect on your credit score

• . A hard inquiry has no effect on your credit score

• . Neither hard nor soft credit inquiries have an effect on your credit score