Business Math- Managing Credit Unit Review

All of the following are part of a credit report EXCEPT:

• Spending Habits

• Loan Repayment

• Credit Limit Utilization

• Current Credit Inquiries

Organize these options into the right categories when it comes to managing debt.

Groups:

(a) Positive Actions to decrease debt

,

(b) Negative Actions to decrease debt

• Increase Income

• Take out a payday loan

• Skip some of your payments to pay off another debt.

• Talk to your lender

• Get a new credit card

• Ignore calls from your lender

• Pay more than minimum monthly payment

• Decrease spending

Which of the following does NOT contribute to your credit score?

• Your payment history

• Which banks issued your credit cards

• Your debt-to-credit ratio

• Length of credit history

Match the following factors that affect your credit score by their percentage.

• 35%

• Payment History

• 30%

• Length of Credit History

• 15%

• New Credit

• 10%

• Amount Owed/Credit Utilization

• 10%

• Credit Mix

  (Types of credit)

Establishing credit early can help with:

• Quick loan approvals

• Higher credit card limits

• Avoiding yearly credit checks

• Getting better interest rates

Which of the following is TRUE about finding errors on your credit report?

• You may have to file a dispute with each credit bureau

• You should wait until the end of the month before reporting

• Finding errors is common & is not a big deal

• Overlooked errors may result in you paying a fine

To get a free credit score, I can talk to a ​ (a)   ​ , or go to my ​ (b)   , or go to ​ (c)   or ​ (d)   . Going to ​ (e)   will cost me money.

• credit counselor
• credit card statement
• Credit Karma
• myFICO.com
• Credit Wise

What is the quickest way to increase my credit score?

• Open a new line of credit

• Make on time payments

• Close a credit account

• Make minimum payments

Why might older individuals typically have higher credit scores?

• They have had more time to accumulate wealth

• They have longer credit histories

• They always earn more than younger individuals

• They have longer credit histories

How often should you check your credit report for errors?

• Only when applying for a major loan

• Once a decade

• At least once a year

• Every month