Credit Cards and Credit Reports

What does the term 'credit' primarily refer to?

• A method of saving money

• A type of bank account

• A form of currency

• An agreement to pay back something received now

What is a credit report?

• A record of a person's credit history

• A list of all bank accounts

• A summary of monthly expenses

• A report on a person's income

Which of the following is NOT one of the '3 Cs of credit'?

• Capacity

• Character

• Collateral

• Credit Score

What is considered a very good credit score?

• 770

• 640

• 850

• 300

Which factor is the most important in calculating a credit score?

• Payment history

• Length of credit history

• Amount of debt

• Mix of credit types

What is the role of credit bureaus?

• To provide financial advice

• To issue loans

• To manage bank accounts

• To collect information on consumers

What is the first step to building good credit?

• Opening banking accounts

• Paying bills late

• Borrowing as much as possible

• Requesting multiple credit cards

What does 'collateral' refer to?

• A person's income

• A person's employment history

• A person's credit score

• A person's savings and owned goods

What happens if you have too many credit requests?

• Your credit score may decrease

• Your credit score will increase

• You will receive more loans

• You will have a better credit report

What is interest in the context of loans?

• A fee paid for borrowing money

• A government tax

• A type of savings account

• A form of investment