Understanding Credit

How can one get started using credit?

• By opening a savings account

• By applying for a credit card

• By taking out a mortgage

• By investing in stocks

What is a benefit of understanding credit reports?

• Better investment decisions

• Improved loan approval chances

• Lower insurance premiums

• Higher interest rates

The financial ability to repay a loan with present income is known as ___

• Character

• Capacity

• Condition

• Capital

Which of the following is a question a creditor might ask about your credit history?

• Did you travel recently?

• Did you pay your bills on time?

• Did you change your address?

• Did you buy a new car?

What does every person who uses credit have on file at a credit bureau?

• A credit score

• A credit history

• A credit card

• A credit report

How many national credit bureaus are listed in the document?

• 2

• 3

• 4

• 5

What is the highest credit score that you can earn?

• 300

• 600

• 850

• 1000

Which of the following is NOT mentioned as information supplied by subscribers?

• Addresses

• Credit balances

• On-time payment record

• Product inventory

Which of the following is NOT a piece of information gathered by credit bureaus?

• Names

• Addresses

• Credit balances

• Product specifications

What is a potential issue with credit reports?

• They may contain errors

• They are always accurate

• They are never updated

• They are only for businesses