Understanding Credit Scores and Reports

Which agencies compile your credit report in the United States?

• Insurance companies

• Banks

• Federal government

• Credit bureaus

What does a credit report provide a record of?

• Your criminal record

• Your financial responsibility

• Your educational achievements

• Your work history

What is primarily examined in your financial profile when you apply for a loan?

• Educational background

• Employment history

• Bank balance

• Credit score

What is the highest possible score you can achieve on a credit score scale?

• 900

• 850

• 1000

• 750

Which type of credit score might be referred to as a FICO score?

• Bank score

• Loan score

• Debt score

• Credit score

What percentage of your FICO score is determined by your payment history?

• 35%

• 30%

• 15%

• 10%

What is the impact of a long credit history on your FICO score?

• Positive, as it shows experience

• Negative, as it indicates old age

• Variable, as it depends on the type of credit

• Neutral, as it depends on the amount owed

What is a benefit of having a diverse type of credit history?

• Shows ability to manage different credits

• Eliminates the need for credit inquiries

• Increases the total credit limit

• Reduces the interest rates automatically

Which factor does not influence your FICO score?

• Types of credit in use

• Length of credit history

• Amounts owed

• Your age

What might frequent applications for new credit indicate?

• Low risk to lenders

• Stable income

• High financial intelligence

• Financial pressure