Understanding Credit Scores and Reports

Graham shares insights on achieving a perfect credit score by understanding the credit scoring system and its factors, such as payment history, amounts owed, and credit history. He provides strategies to improve scores, like becoming an authorized user and managing credit utilization. Graham also warns against common mistakes, such as closing old accounts, and offers final tips for maintaining a high credit score.

What is the main benefit of having a perfect credit score?

• Better customer service

• More credit card offers

• Lower interest rates

• Higher credit card limits

Which factor has the largest impact on your credit score?

• On-time payment history

• Types of credit

• Credit inquiries

• Credit utilization

What is the recommended credit utilization rate to maintain a good credit score?

• 10%

• 30%

• 50%

• 100%

How long does a late payment stay on your credit report?

• 10 years

• 7 years

• 5 years

• 3 years

What is the purpose of becoming an authorized user on someone else's credit card?

• To avoid paying interest

• To increase your credit limit

• To share credit card rewards

• To build your own credit history

What is Experian Boost designed to do?

• Provide free credit reports

• Remove late payments from your report

• Track on-time phone and utility payments

• Increase your credit limit

What should you do if you find inaccuracies on your credit report?

• Ignore them

• Close the account

• Dispute them

• Pay them off

Why should you avoid closing old credit accounts?

• It increases your credit limit

• It improves your credit utilization rate

• It maintains the average age of your credit history

• It prevents late payments

What is the main reason to avoid credit repair services?

• They don't improve your score

• They take too long

• They are often scams

• They are too expensive

What credit score range typically gets you the best rates and terms from lenders?

• 600-650

• 650-700

• 700-760

• 760 and above