Review

First and Last name

Class Period

What are the two most important factors in calculating your credit score?

• Payment history and type of account
• Amounts owed and length of credit history
• Payment history and amounts owed
• Length of credit history and new credit inquiries

Joy is carrying a balance on his credit card of $500. The credit limit on the card is $1,500. What is his utilization rate?

• 0%
• 3%
• 33%
• 50%

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

• Salary of your current job
• Payment history of your car loan
• Credit card payment history
• Student loan activity

Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?

• Freecreditreports.com
• Freecreditreport.com
• getcreditreportshere.com
• annualcreditreport.com

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

• Cancel his credit cards
• Make on-time payments
• Get a car loan
• Check his credit score

Which of the following will help you begin developing a credit history before you graduate from college.

• Always say "credit" when asked "credit or debit?" at a store
• Make small payments on your student loans while in college, even though they are not required to be paid back until you leave
• Any time you borrow money from your parents, friends, or family, be sure to pay it back promptly
• Be sure to keep a bit of your paycheck in a savings account instead of a checking account

Each of the following is likely to check your credit score EXCEPT?

• Credit card companies
• Auto loan lenders
• Landlords
• Federal student loan office

Mike and Sia are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Mike has a credit score of 730 and Sia has a score of 600. Which of the following statements is TRUE?

• Over the five year period, Sia and Mike will pay the same amount for the car loan

• Mike's monthly payment on the auto loan will be about $100 more than Sia's payment

• Sia's monthly payment on the loan will be about $100 more than Mike's payment

• Lenders are not allowed to charge people different interest rates based on their credit scores