Decoding Your Credit Score with Kal Penn

The video begins with a humorous conversation about credit scores, highlighting common misconceptions. It then explains what a credit score is, its importance, and how it helps lenders assess creditworthiness. The video details the five factors that affect credit scores: payment history, amounts owed, length of credit history, types of credit, and new credit. It emphasizes the importance of responsible credit use and concludes with a call to action to subscribe for more educational content.

What food item is being discussed at the beginning of the video?

• Pizza

• Burgers

• Tacos

• Sushi

What is the actual range of credit scores?

• 100 to 900

• 400 to 950

• 200 to 800

• 300 to 850

What does a credit score represent?

• Your spending habits

• Your credit history

• Your savings

• Your annual income

Which factor is the most important in determining your credit score?

• Types of credit

• Length of credit history

• Payment history

• Credit utilization

What percentage of your credit score is determined by your payment history?

• 55%

• 45%

• 35%

• 25%

What is the second most important factor in your credit score?

• New credit

• Types of credit

• Length of credit history

• Credit utilization

What percentage of your credit score is determined by the amount owed or credit utilization?

• 35%

• 30%

• 25%

• 20%

Tags

CCSS.6.RP.A.3C

How much does the length of your credit history contribute to your credit score?

• 15%

• 10%

• 20%

• 25%

Tags

CCSS.7.RP.A.3

What does 'types of credit' refer to?

• The variety of credit sources you use

• The number of credit cards you have

• The interest rates on your loans

• The amount of debt you have

What should you avoid to maintain a good credit score?

• Late payments

• Taking out loans

• Having multiple credit sources

• Using credit cards