Credit Quiz

What is the purpose of a credit report?

• To track your employment history

• To provide a detailed history of your credit activity

• To list your assets and liabilities

• To show your monthly budget

What is a credit utilization ratio?

• The ratio of your debt to your income

• The ratio of your credit card balances to your credit limits

• The ratio of your savings to your expenses

• The ratio of your assets to your liabilities

How often can you get a free credit report from each of the major credit bureaus?

• Once a month

• Once a year

• Twice a year

• Every two years

What is a credit freeze?

• A temporary hold on your credit card

• A restriction on access to your credit report

• A reduction in your credit limit

• A penalty for late payments

What is the main purpose of a credit card grace period?

• To allow you to earn rewards

• To give you time to pay your balance without interest

• To increase your credit limit

• To reduce your minimum payment

What is a credit card's billing cycle?

• The period between credit card statements

• The time it takes to process a payment

• The time it takes to approve a credit card application

• The period during which interest is charged

What is a credit report?

• A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness

• A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness

• A report which shows which credit cards are better than others

• A report invented by Allan Greenspan and credited to Al Gore