What is one of the main consequences of having a low credit score?

• Higher interest rates on mortgages

• Easier approval for loans

• More credit card offers

• Lower insurance premiums

What is the most important factor in determining your credit score?

• New credit inquiries

• Credit mix

• Length of credit history

• Payment history

How many opportunities per year do you have to make an on-time payment if you have one credit card?

• 6

• 12

• 24

• 36

What happens if you only make the minimum payment on your credit card?

• Your credit limit increases

• You carry a remaining balance and accumulate interest

• You avoid interest charges

• Your credit score improves

What is the recommended credit utilization percentage to aim for?

• Below 20%

• Below 30%

• Below 10%

• Below 50%

How is overall credit utilization calculated?

• Total credit card balances divided by total credit limits

• Total credit limits divided by total credit card balances

• Total number of credit cards divided by total credit limits

• Total credit card balances divided by the number of credit cards

What is one way to keep your credit utilization low?

• Make only minimum payments

• Close old credit accounts

• Increase your credit limits

• Apply for new credit cards frequently

What is the third most important factor in determining your credit score?

• Payment history

• Length of credit history

• New credit inquiries

• Credit mix

What should you do to improve your length of credit history?

• Open new credit accounts frequently

• Close old credit accounts

• Apply for multiple loans

• Get started with credit as early as possible

How long does a hard inquiry impact your credit score?

• 1 year

• 2 years

• 3 years

• 5 years