Credit and Credit Management Assessment

What is a credit score?

• A measure of your annual income
• A number representing your creditworthiness
• Your total amount of debt
• A summary of your monthly expenses

Which of the following is a major credit reporting agency?

• Consumer Financial Protection Bureau
• Equifax
• Federal Reserve
• Internal Revenue Service

What is an example of revolving credit?

• Mortgage
• Student loan
• Credit card
• Car loan

What can negatively affect your credit score?

• Paying bills on time
• High credit card balances
• Having a variety of credit types
• Checking your own credit report

What is the primary function of credit reporting agencies?

• To enforce tax laws
• To provide credit cards
• To compile credit information
• To offer loans

How often can you get a free credit report from each major credit bureau?

• Once a month
• Once a year
• Once every five years
• Once every six months

What is an installment credit?

• A credit card balance
• A payday loan
• A car loan
• A line of credit

Which factor has the greatest impact on your credit score?

• Types of credit in use
• Length of credit history
• Payment history
• New credit inquiries

What is a common mistake people make with credit?

• Keeping old credit accounts open
• Paying off balances in full
• Borrowing more than they can repay
• Using credit for emergencies only

What should you do if you find an error in your credit report?

• Ignore it
• Report it to the credit bureau
• Contact your bank
• Close all credit accounts