What are the two most important factors in calculating your credit score?

Amounts owed and length of credit history

Payment history and types of accounts

Length of credit history and new credit inquiries

Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT...

Applying for another credit card to use in case she runs out of cash paying off her debt

Reducing spending by canceling some of her streaming subscriptions

Taking extra shifts at work to increase her income

Making more than the minimum required payment on her debt

All of the following would show up on a credit report EXCEPT...

Payment history of your car loan

Which of the following methods of getting your credit score would involve paying a fee?

Getting a score from myFICO.com

Checking your credit card or loan statement

Talking to a non-profit counselor

Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?

Ask his parents to cosign a credit card or add him as an authorized user on their credit card

Always say "credit" when asked "credit or debit?" at a store

Any time he borrows money from a friend or family member, be sure to pay it back promptly

Take out some private student loans, even though he doesn't need them because he has grants and scholarships

Which of the following individuals or groups would be the LEAST likely to look at your credit score?

A bank representative who is helping you open a savings account

Someone interviewing you for a job

An insurance company reviewing your applicant for auto insurance

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

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

Consolidate multiple debts into one new loan

Who tracks all of your credit information?

Credit reporting agencies (Equifax, Experian and TransUnion)

Consumer Financial Protection Board (CFPB)

What is the general timeline to establish your first credit score?

Six months after you first actively use your credit

As soon as you apply for a credit card or loan

Once you pay all of your credit balances in full

You find an error on your credit report: Your credit card account indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments. What should you do FIRST?

Contact the credit reporting agency

Contact the credit card company to have them fix it

Wait a few weeks to see if it gets resolved

Call the police to report the possible identity theft

Which of the following things should you have ready when contacting a credit reporting agency to report an error on your credit report?

An explanation of the mistake and any evidence you have supporting your claim

Your preferred payment method to pay for fixing the error

A list of all of your financial accounts and balances

References from a non-family member vouching for your creditworthiness

Which of the following could have a NEGATIVE impact on your credit score if done in a short period of time?

Applying for multiple credit cards

Paying down balances on your credit card accounts

Decreasing your utilization of credit

Which best describes the Debt Snowball method for paying off debt?

Only make payments on your smallest debt first, then move on to your second smallest debt, and so on

Once your debt "snowballs" out of control, hire a certified credit counselor to help get your finances back on track

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the highest balance

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the lowest balance

Which of these represents a potential consequence of neglecting to pay your federal student loans?

Wages or tax refunds can be garnished

What benefits do you receive by taking out a loan with a cosigner?

You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit

You don’t get penalized for late payments

You get a discount on future loans after this one is paid off

You automatically get the same credit score as the cosigner once the loan is paid off

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?

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

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

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 response best completes the sentence "It's best to begin establishing credit when you're young because ________ "?

You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card

Accessing credit only becomes more expensive as you get older

Negative marks on your credit report go away faster for younger borrowers

Credit scores are free for anyone under the age of 25

The amount you can charge to a secured credit card is limited by...

The amount of money you deposit into an account as collateral

The total amount of money across all your bank accounts

How long you’ve had an account with the bank

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

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

Only consumers with high scores are approved for credit

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

It generally has no impact on your financial situation

Credit and Debt Knowledge Quiz Quiz

32 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A measurement of your outstanding debt divided by your total available credit; a general rule of thumb is to keep this under 30%.

Amounts Owed

Credit History

Credit Report

Credit Score

Credit Utilization Rate

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A record of a person's use of credit over time; 15% of your credit score is based on the length of your credit history.

Amounts Owed

Credit History

Credit Report

Credit Score

Credit Utilization Rate

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Something, typically money, that you owe to a person or a business.

Amounts Owed

Credit History

Credit Report

Credit Score

Debt

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report.

Amounts Owed

Credit History

Credit Report

Credit Score

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much you owe each creditor individually and in total; 30% of your credit score is based on this.

Amounts Owed

Credit History

Credit Report

Credit Score

Credit Utilization Rate

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first.

Debt

Debt Snowball Method

FICO Score

High Rate Method

Payment History

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The most commonly used credit score.

Amounts Owed

Credit History

Credit Report

Credit Score

FICO Score

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

28 questions

Intro to Business Chapter 10 Review

Quiz

•

9th - 12th Grade

30 questions

Long Quiz in POM

Quiz

•

12th Grade

27 questions

CHAPTER 5 SAVINGS QUIZ

Quiz

•

10th - 12th Grade

29 questions

Smart Goals and Time Management

Quiz

•

10th - 12th Grade

30 questions

Chapter 2 Review

Quiz

•

9th - 12th Grade

30 questions

EverFi Financial Literacy Lesson 4: Consumer Skills

Quiz

•

10th - 12th Grade

30 questions

POB Chapter 2.1 Review

Quiz

•

9th - 12th Grade

35 questions

Principles of Business 9e Chapter 9

Quiz

•

9th - 12th Grade

Popular Resources on Wayground

8 questions

Spartan Way - Classroom Responsible

Quiz

•

9th - 12th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

14 questions

Boundaries & Healthy Relationships

Lesson

•

6th - 8th Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

3 questions

Integrity and Your Health

Lesson

•

6th - 8th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

9 questions

FOREST Perception

Lesson

•

KG

20 questions

Main Idea and Details

Quiz

•

5th Grade

Discover more resources for Business

10 questions

Credit and Credit Cards Quiz 2023

Quiz

•

12th Grade

20 questions

Reading a Pay Stub Practice

Quiz

•

9th - 12th Grade

Credit and Debt Knowledge Quiz

A measurement of your outstanding debt divided by your total available credit; a general rule of thumb is to keep this under 30%.

A record of a person's use of credit over time; 15% of your credit score is based on the length of your credit history.

Something, typically money, that you owe to a person or a business.

A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report.

How much you owe each creditor individually and in total; 30% of your credit score is based on this.

A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first.

The most commonly used credit score.

A document with information about a person’s credit activity and history.

A history of the payments you have made on all credit you have obtained; 35% of your credit score is based on this.

A method of debt repayment whereby the borrower prioritizes paying down debts with the highest interest rates first.

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business