Credit Reports Quiz

What is a credit report?

• A record of a person's criminal history.

• A detailed record of a person's credit history including credit card information, payment history, and public records.

• A document listing a person's educational qualifications.

• A summary of a person's online activities.

Why are credit reports important to lenders and borrowers?

• They provide information on a person's social media behavior.

• They indicate a person's shopping preferences.

• They reflect the financial habits of an individual over time and can influence lending decisions.

• They are used to determine a person's eligibility for employment.

Who compiles credit reports?

• Government agencies.

• Credit unions.

• Credit bureaus.

• Educational institutions.

What is the purpose of the information on a credit report?

• To calculate a person's net worth.

• To track a person's employment history.

• To calculate a credit score.

• To monitor a person's health records.

How long does negative credit information usually stay on your credit report?

• 1 years.

• 5 years.

• 7 years.

• 12 years.

What can a positive credit history indicate?

• A high credit score.

• A person's eligibility for government benefits.

• A person's educational level.

• A person's investment portfolio.

What can lenders use credit scores for?

• Deciding whether to give you a loan or a credit card.

• Determining your political affiliations.

• Calculating your body mass index.

• Assessing your professional skills.

How can your credit score affect you when obtaining a loan or a credit card?

• It can affect the type of phone plan you are eligible for.

• It can affect the interest rate you have to pay.

• It can affect your ability to travel abroad.

• It can affect your social media presence.

What factors can negatively impact your credit score?

• High income.

• Timely bill payments.

• High credit card balances.

• Investing in the stock market.

How often should you check your credit report?

• Once a week.

• Once a month.

• Once a year.

• Every five years.