Credit Test Review

How do lenders determine the credit risk of a person?

• FBI background investigation.

• Checking their education level.

• Checking their high school grades.

• Checking their credit score and rating.

What is a credit score commonly known as?

• FFICA

• FICO

• FITO

• None of the Above.

Of the five areas used to measure a person’s credit, what two areas are worth the most points?

• New credit and types of credit.

• Length of credit history and new credit.

• Payment history and how much you owe.

• New credit and payment history.

Which one below is considered the best credit rating?

• Poor

• Fair

• Good

• Excellent

The credit bureaus are organizations that

• Maintain records on everyone’s school grades.

• Investigate illegal credit activity.

• Maintain records on everyone’s credit activity and habits.

• All of the above.

Creating many new credit accounts will increase your credit score.

• True

• False

For the payment history area of a person’s credit score, you receive points for paying bills on time like a phone bill, car payment, and credit card payments.

• True

• False

The shorter your history of using credit the more points you earn in this area.

• True

• False

Once a year, everyone is allowed to view their own credit report from each of the credit bureaus, free of charge.

• True

• False

__________________ an organization that maintains records on people’s credit history and issues credit reports.

• Credit Bureau

• Credit Union

• Credit Agency

• Credit Institution