Financial Literacy Study Set on CREDIT

Who tracks all of your credit information?

• Credit reporting agencies (Equifax, Experian and TransUnion)

• Federal government

• Consumer Financial Protection Board (CFPB)

• Lenders

Which of the following methods of getting your credit score would involve paying a fee? Mark only one oval.

• Checking your credit card or loan statement

• Talking to a non-profit counselor

• Checking creditkarma.com

• Getting a score from myFICO.com

All of the following would show up on a credit report EXCEPT... Mark only one oval.

• Salary of your current job

• Payment history of your car loan

• Credit card payment history

• Student loan activity

• Other:

What is the impact of closing a credit card account on your credit score? Mark only one oval.

• It can potentially lower your credit score by reducing your available credit

• It will always increase your credit score

• It will automatically remove any negative marks on your credit report

• It has no impact on your credit score

You have a credit card that you use regularly for small purchases with the goal of improving your credit score. Which strategy would have the GREATEST positive impact?

• Use less than 30% of the credit limit and pay it off in full every month by the due date

• Always carry a balance from month to month

• Regardless of how much your balance is, make the minimum payment required on your credit card every month by the due date

• Put the credit card in a drawer instead and don't ever use it

How can your credit score impact your financial well-being?

• Only consumers with high scores are approved for credit

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

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

• It generally has no impact on your financial situation

You're paying your credit card bill and your student loan payment each month, but you're falling behind on your auto loan payment. Which friend's advice could have a NEGATIVE impact on your credit score? Mark only one oval.

• Joanie says, "Call the auto lender and see if you can negotiate a lower monthly payment or some other deal."

• Debbie says, "Stop making the credit card payment for a few months until you're caught up on the auto loan."

• Angie says, "Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family."

• Betty says, "Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential."

Which free credit report service is authorized by federal law but only accessible once per year?

• AnnualCreditReport.com

• Credit Karma

• Credit Wise

• Wallet Hub

What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?

• Snowball method

• Make minimum payments

• High rate method

• Consolidate multiple debts into one new loan

When calculating one’s credit score, ______________ is the largest percentage category of how an individual’s score is calculated:

• Payment History
• Credit History and Length
• Outstanding Debt
• Pursuit of New Credit