Improving Your Credit Score

What is one way to ensure your payments are on time?

• Set up automatic payments

• Pay only the minimum amount due

• Wait for the payment reminder calls

• Only make payments in person

What percentage of your total credit limit is advised to be used to maintain a good credit score?

• 50%

• 30%

• 75%

• 100%

What can hurt your credit score when managing credit card accounts?

• Using a high percentage of your total credit limit

• Closing unused credit card accounts

• Paying off the balance each month

• Checking your credit score monthly

What contributes to a long credit history?

• Paying loans on time over a period

• Having a mix of credit types

• Applying for new credit cards frequently

• Keeping credit card balances high

Why might applying for a lot of credit over a short period of time be harmful?

• It diversifies your types of credit

• It may signal a need for credit due to negative economic circumstances

• It increases your total credit limit

• It indicates financial stability

What should you do if you spot suspected errors on your credit reports?

• Ignore them as they are likely insignificant

• Dispute them

• Apply for more credit cards to balance the errors

• Close your credit card accounts

What type of product is recommended for someone new to credit?

• Investment accounts

• Payday loans

• Secured credit cards or credit builder loans

• High-interest credit cards

How does paying off your credit card balance each month affect your credit score?

• It helps you get the best scores

• It lowers your score

• It has no effect

• It increases your credit limit

What is a signal of your need for credit according to credit scoring formulas?

• Never missing a payment

• Recent credit activity

• Having a long credit history

• Paying off balances in full each month

Why is it important to keep an eye on old credit card accounts you are not using?

• To ensure they don't expire

• To keep them active by making small purchases

• To check for annual fees

• To make sure an identity thief is not using them