Chapter 4 Lesson 3 Credit Scores and Credit Reports

What is a credit score?

• A two-digit number that represents your age

• A three-digit number that tells banks and lenders how likely someone is to repay debt

• A score that determines your annual income

• A number that shows how many credit cards you own

Which company is associated with the term "FICO score"?

• Experian

• TransUnion

• Fair Isaac Corporation

• Equifax

What is the primary purpose of a credit score?

• To determine your eligibility for a driver's license

• To tell banks and lenders how likely you are to repay debt

• To calculate your monthly expenses

• To assess your educational qualifications

Which of the following is NOT a credit bureau?

• Experian

• TransUnion

• Equifax

• FICO

What do credit bureaus do with your credit history?

• They keep it private and do not share it with anyone

• They sell it to creditors who use it to decide if they will lend money to you

• They use it to create social media profiles

• They use it to determine your health insurance premiums

What is a common myth about credit scores mentioned in the prompt?

• You need a credit score to get a job

• You need a credit score to buy groceries

• You need to get a credit card as soon as you get out of high school to build your credit score

• You need a credit score to travel abroad

What is the relationship between a credit score and a credit report?

• A credit score is a summary of your credit report

• A credit report is a summary of your credit score

• They are the same thing

• They are unrelated

What does the FICO score stand for?

• Financial Income Credit Organization

• Fair Isaac Corporation score

• Federal Insurance Credit Office

• Fiscal Information Credit Order

Which of the following statements is true about credit scores?

• They are used to determine your tax bracket

• They are used by lenders to assess the risk of lending money to you

• They are used to calculate your monthly rent

• They are used to determine your eligibility for a passport

What is the main function of credit bureaus like Experian, TransUnion, and Equifax?

• To provide free financial advice

• To gather and sell information about your credit history

• To offer loans to individuals

• To manage your bank accounts