Credit Score! Questions

Banks want to know the financial history of their loan customers because:

• It helps them assess the risk of lending.

• It is required by law for all customers.

• It increases the loan amount automatically.

• It reduces the paperwork involved.

I’m your bank. You want a loan. Why should I loan you money?

• Because I have a good credit history and can repay the loan.

• Because I want to buy a new car.

• Because I am your customer.

• Because I need money for a vacation.

A credit report contains many pieces of personal information about a consumer. Which of the following are examples of such information?

• Name and Social Security number

• Favorite color and pet's name

• Height and weight

• Preferred shopping stores

You are busy with finals and forgot to pay your credit card bill. You are charged $100 in late fees. This will likely lower your (fill in the blank).

A credit score is:

• A measure of a person's creditworthiness

• A type of bank account

• A form of identification number

• A type of loan

Name one of the three nationwide credit reporting agencies. Choose all that apply.

• Equifax

• TransUnion

• Experian

• FICO

A consumer reporting agency does which of the following?

• Provides loans to consumers

• Collects and reports information about consumers' credit history

• Sells products directly to consumers

• Offers legal advice to consumers

You pay your bills on time. Is this a smart move?

• Yes

• No

Your credit score is 699. According to the FICO credit score system, this is considered:

• Excellent

• Good

• Fair

• Poor

Could this happen? Bill and Sandy are buying their first home. Unfortunately, after checking their credit history, their bank turns them down for a loan because of nonpayment of past credit card bills.

• Yes, this could happen.

• No, this could not happen.

• Only if they have no income.

• Only if they are first-time buyers.