Ramsey - Chapter 4 - Lesson 3 Quiz

What is a credit score?

• A measure of your income

• A three-digit number indicating creditworthiness

• A list of your assets

• A type of bank account

What does a credit score tell banks and lenders?

• Your annual income

• How likely you are to repay debt

• Your total savings

• Your employment history

What is another name for a credit score?

• FICO score

• Income score

• Savings score

• Asset score

Which of the following is NOT considered in a FICO score calculation?

• Debt amount

• Income

• Payment history

• Length of credit history

If you became a millionaire, how would it affect your credit score?

• It would increase significantly

• It would decrease

• It would remain unchanged

• It would double

What is a credit report compared to in the text?

• A financial statement

• A report card

• A bank account summary

• A loan application

Why is it important to check your credit report regularly?

• To increase your credit score

• To apply for more credit cards

• To spot signs of fraud or identity theft

• To reduce your debt

At what age can you request a free credit report from the credit bureaus?

• 16

• 18

• 21

• 25

Who are the people that actually "need" a credit score according to the text?

• People who are debt-free

• People who plan to take on more debt

• People who want to save money

• People who are retired

What is the benefit of checking all three credit bureaus' reports?

• They offer different credit scores

• They track credit history in slightly different ways

• They provide free financial advice

• They help you get a loan