Understanding Credit: Scores, Worthiness, and Bankruptcy

What is NOT a factor that affects your credit score?

• Payment history

• Employment status

• Credit utilization ratio

• Types of credit in use

Which type of bankruptcy is often referred to as "liquidation"?

• Chapter 7

• Chapter 11

• Chapter 13

• Chapter 9

When evaluating creditworthiness, which of the following is NOT typically considered?

• Income level

• Credit score

• Marital status

• Debt-to-income ratio

How long does a Chapter 7 bankruptcy typically stay on your credit report?

• 5 years

• 7 years

• 10 years

• 15 years

Which credit score calculation method uses a scale from 300 to 850?

• VantageScore

• FICO Score

• Both A and B

• Neither A nor B

What is a key strategy for improving your credit score?

• Closing old credit accounts

• Applying for multiple credit cards at once

• Making payments on time

• Maximizing your credit card spending

What percentage of your credit score is based on your payment history?

• 10%

• 20%

• 35%

• 50%

Which type of bankruptcy allows for a reorganization of debt, often used by businesses?

• Chapter 7

• Chapter 11

• Chapter 13

• Chapter 9

What does a credit utilization ratio represent?

• The ratio of current debt to income

• The percentage of credit available that you are using

• The number of credit inquiries made in the last year

• The ratio of secured to unsecured debt

Which action can negatively impact your credit score?

• Paying off a loan early

• Checking your own credit score

• Missing a credit card payment

• Reducing your credit card spending