Building Credit Sum

What is the term meaning the bank's ability to trust you to pay back a loan is known as (a)   ?

• Credit Card
• Credit Agency
• Credit Score
• Credit Limit

What does credit measure? 

• How likely someone is to pay back a loan 
• How trustworthy someone is with money 
•  How well someone has made payments in the past
• All of the above

What would a 622 credit score be considered? 

• Bad 
• Fair 
• Good 
• Excellent 

What are 5 factors that affect a credit score?

• A. Payment history, capacity, length of credit, new credit, mix of credit

• C. Age, gender, race, nationality, marital status

• D. Social media activity, shopping habits, favorite color, zodiac sign, shoe size

What is a good first step to start building your credit?

• Open a checking account

• Take out a large loan

• Apply for multiple credit cards

• Open a savings account

What is a secured credit card?

• A credit card that is supported by collateral or a deposit

• A credit card with no credit limit

• A credit card with a high interest rate

• A credit card with no income requirement

The most important factor in calculating your credit score is (a)   .

• The mix of credit types you have
• Your payment history (on time vs. l
• The number of recently opened accou
• The length of your credit history

What should you do before applying for a credit card to build credit?

• Use a prepaid card to establish credit

• Check if the lender will report your payment history to the bureaus

• Apply for multiple cards at once

• Keep a high credit utilization ratio

What is the purpose of checking your credit reports?

• To see if you have been approved for new credit

• To apply for a credit card

• To increase your credit limits

• To check for accuracy and address any problems

What is the best way to start building credit from scratch?

• Establishing a revolving line of credit such as a credit card

• Becoming an authorized user on someone else's credit card

• Applying for multiple credit cards at once

• Taking out a big car loan