Credit Score and Financial Products Quiz

Which of the following financial products will not help you build a credit history?

• Secured credit card

• Debit card

• Home mortgage

• Credit card

What are the two most heavily weighted components in calculating a FICO credit score?

• Payment history and type of account

• Amounts owed and length of credit history

• Payment history and amounts owed

• Length of credit history and new credit inquiries

Which of the following would not appear on a credit report?

• Salary of your current job

• Payment history of your car loan

• Credit card payment history

• Student loan activity

How can your credit score impact your financial situation?

• Consumers with high scores can borrow and those with low scores cannot.

• Consumers with low scores get lower interest rates on loans than those with high scores.

• Your credit score will determine whether you are approved for a loan and what the interest rate will be.

• It generally has no impact on your financial situation.

If you forget to pay your credit card bill one month, how long will that payment information show up on your credit report?

• Once a payment is made, it will disappear

• One year

• Seven years

• Forever

What is the number one concern regarding prepaid cards?

• Many stores do not accept prepaid cards.

• Prepaid cards often have many hidden fees.

• Prepaid cards can be used in stores, but not for shopping online.

• Prepaid cards cannot be reloaded with additional funds.

You have a goal of a $16,000 emergency fund. You earn a salary of $40,000/year and decide to save 20% of your gross pay. How long will it take to achieve your goal?

• 6 months

• 1 year

• 2 years

• 3 years

Which item would you find on your monthly bank statement?

• The monthly fee

• The terms and agreement of your account

• The per transaction cost of using a debit card in a foreign country

• Credit card fees

You are earning 1% annual interest on your savings account. Assume your interest rate does not change, and you do not deposit any additional money. How many years will it take for your money to double?

• 1 year

• 7.2 years

• 10 years

• 72 years

When a bank says their savings account earns .5%, that typically means you will earn .5% over what period of time?

• Daily

• Monthly

• Quarterly

• Annually