Understanding Credit Pre-Quiz

Credit cards are charged to the maximum limit.

Does creditworthiness increase or decrease?

• Increase

• Decrease

Bills are paid on time.

Does creditworthiness increase or decrease?

• Increase

• Decrease

Recently applied for multiple credit cards.

Does creditworthiness increase or decrease?

• Increase

• Decrease

The one credit card you have is maxed out.

Does creditworthiness increase or decrease?

• Increase

• Decrease

Keeping a credit card open for a long period of time.

Does creditworthiness increase or decrease?

• Increase

• Decrease

Which credit score would be the most ideal to have?

• 100

• 700

• 500

• 300

How does a high credit score affect your loan application?

• It decreases the chances of loan approval.

• It increases the interest rates on loans.

• It increases the chances of loan approval and may result in lower interest rates.

• It has no impact on the loan application process.

How does a credit card work?

• You load the card with your own money.

• It is unlimited and you don't have to pay it back.

• It is loaned/borrowed money you pay in one large bill at the end of each month.

Credit experts recommend that you check the status of your credit reports at least

• every time you apply for a loan or credit card

• when you apply for your first loan or credit card

• once a year

• once every five years

True or False. There is a greater demand for credit cards now than 20 years ago.

• TRUE

• FALSE