Spring'24 MS Credit Management QUIZZIZ

Why do credit card companies like it when you pay just the smallest amount each month instead of paying all you owe at once?

• To encourage responsible financial behavior
• To improve your credit score
• To help you pay off your debt faster
• To earn more money from the interest charged on the remaining balance.

All of the following are good ways for young adults to build credit, except:

• Taking out a payday loan

• Applying for a secured credit card
• Making on-time payments
• Maxing out credit cards

What are the two main things to think about when figuring out your credit score?

• Income level and employment status
• Number of credit inquiries and types of credit used
• Payment history and total debt

• Credit limit and age of credit history

Which of the following would NOT appear on a credit report?

• Payment history of your car loan

• Salary of your current job

• Credit card payment history

• Student loan activity

Which strategy will help boost your credit score the MOST?

• Ignoring credit card balances
• Making only minimum payments on debts
• Opening multiple new credit accounts
• Use less than 30% of the credit limit and pay it off in full every month by the due date

Who keeps track of all your credit information?

• Bank tellers
• Social media platforms
• Local grocery stores
• Credit reporting agencies (Equifax, Experian and TransUnion)

How does your credit score affect your money situation?

• Your credit score affects your ability to cook, the recipes you can follow, and even your chances of winning a cooking competition.
• Your credit score affects your ability to borrow money, the interest rates you receive, and even your chances of getting approved for an apartment or job.
• Your credit score affects your ability to predict the weather, the accuracy of your forecasts, and even your chances of becoming a meteorologist.
• Your credit score affects your ability to play the guitar, the songs you can perform, and even your chances of starting a band.

To start building your credit score, how long does it usually take?

• 6 months
• 1 year
• 3 months
• 2 weeks

What advantages do you get when you borrow money with someone else who promises to pay if you can't (co-signer)?

• Having a co-signer can increase your interest rate
• Having a co-signer can negatively impact your credit score
• Having a co-signer can help you qualify for a loan, secure a lower interest rate, and build credit.
• Having a co-signer can help you avoid paying back the loan

What Should You Do First If You Spot an Error on Your Credit Report?

You saw that your credit card statement shows you were 60 days late on a payment, but your bank records prove you always paid on time. What's the first step you should take?

• Contact the credit card company to have them fix it

• Contact the credit reporting agency

• Wait a few weeks to see if it gets resolved

• Call the police to report the possible identity theft