Understanding Credit Reports and Scores MS8 lesson 2 OCS 12th

What is a credit report?

• A summary of your bank account balances.

• A detailed history of your credit activities.

• A list of your monthly expenses.

• A report card from your school.

What is the range of a FICO credit score?

• 400 to 900

• 300 to 850

• 200 to 700

• 100 to 500

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

• 50%

• 35%

• 25%

• 10%

What is recommended to avoid damaging your credit utilization?

• Not exceeding 30% of your credit limit.

• Applying for multiple credit cards.

• Paying off your balance once a year.

• Closing old credit accounts.

Why should you avoid closing old credit accounts?

• It makes it easier to get new credit cards.

• It has no effect on your credit score.

• It decreases your credit score.

• It increases your credit score.

What should you do to build a credit history?

• Apply for multiple loans.

• Avoid using credit.

• Close all old credit accounts.

• Open a credit card designed for people with no credit history.

How often should you check your credit report for mistakes?

• Once a month

• Once a year

• Never

• Every five years

What should you do if you find a mistake on your credit report?

• Apply for a new credit card.

• Wait for it to be corrected automatically.

• Contact the credit bureau immediately.

• Ignore it.

What is the best definition of a credit report?

• A number that shows a snapshot of your credit at a specific moment in time

• A number that shows how much of your overall credit you're using

• A period of time between when you spend money and when the company charges you interest

• A history of how you pay back loans and credit cards

Which action could help improve your credit history?

• Leave credit card bills outstanding.

• Always pay your credit card bill on time.

• Only get a debit card and avoid credit cards.

• Make a major purchase that you can't afford right now