Understanding Credit Reports and Scores

Why is understanding credit scores and reports important?

• They are used to calculate taxes.

• They are only important for business owners.

• They play a major role in significant financial decisions.

• They help in making better shopping decisions.

What is a credit report primarily used for?

• To track your shopping habits.

• To determine your financial dependability.

• To calculate your monthly expenses.

• To predict your future income.

Which of the following is NOT a section in a credit report?

• Identifying information

• Credit accounts

• Travel history

• Credit inquiries

What should you do if you find incorrect information on your credit report?

• Contact your bank for a correction.

• Inform the reporting agencies immediately.

• Ignore it, as it will correct itself.

• Wait for a year to see if it changes.

Where can you access your free annual credit reports?

• freecreditreport.com

• mycreditreport.com

• annualcreditreport.com

• creditreport.com

What is a potential sign of identity theft on a credit report?

• A high credit score

• Incorrect information

• A long credit history

• A low number of credit inquiries

What is a credit score similar to?

• A bank statement

• A tax return

• A financial report card

• A shopping list

What is the range of a FICO credit score?

• 200 to 800

• 100 to 900

• 300 to 850

• 400 to 950

Which component has the largest impact on your FICO score?

• Length of credit history

• Credit mix

• Payment history

• New credit

What is considered a good FICO score?

• Above 500

• Above 670

• Above 750

• Above 600