Mastering Credit & Credit Scores

What is a credit report?

• A credit report is a list of all the loans a person has taken out.

• A credit report is a detailed record of an individual's credit history.

• A credit report is a document that shows a person's employment history.

• A credit report is a summary of an individual's bank account balance.

What information is typically found in a credit report?

• Employment history

• Personal information, credit accounts, payment history, credit inquiries, public records.

• Bank account balances

• Investment portfolio details

How often can you check your credit report for free?

• Every month from all major credit bureaus.

• Twice a year from each of the three major credit bureaus.

• Once every six months from one credit bureau.

• Once a year from each of the three major credit bureaus.

What is a credit score?

• A credit score is a measure of a person's income.

• A credit score is a numerical value that indicates a person's creditworthiness.

• A credit score is a document that lists all debts.

• A credit score is a type of loan.

What is the range of most credit scores?

• 100 to 500

• 300 to 850

• 400 to 900

• 250 to 750

What factors are used to calculate a credit score?

• Income level and job stability

• Payment history, amounts owed, length of credit history, new credit inquiries, types of credit used.

• Age and gender

• Location and marital status

How does payment history affect your credit score?

• Payment history affects your credit score by reflecting your reliability in repaying debts; on-time payments boost your score, while late payments harm it.

• Payment history is irrelevant to loan approvals.

• Only credit inquiries affect your credit score.

• Payment history has no impact on credit scores.

What is the impact of credit utilization on your score?

• Credit utilization only affects loans, not credit cards.

• Higher credit utilization always improves your score.

• Credit utilization significantly impacts your credit score; lower utilization improves it, while higher utilization can decrease it.

• Credit utilization has no effect on your credit score.

How long do late payments stay on your credit report?

• 7 years

• 5 years

• 3 years

• 10 years

What is the significance of having a mix of credit types?

• A mix of credit types can enhance your credit score and improve loan eligibility.

• Having only one type of credit is always better for your score.

• A mix of credit types has no impact on your credit score.

• A diverse credit mix can lead to higher interest rates.