Building Credit as a College Student

Why is it beneficial to establish good credit when you are young?

• It ensures you never have to pay taxes.

• It helps you buy a car or house earlier with less interest.

• It guarantees a high-paying job after graduation.

• It allows you to travel more frequently.

What is one advantage of becoming an authorized user on a parent's credit card?

• You get unlimited spending power.

• You are not responsible for any payments.

• You automatically receive a high credit score.

• You can benefit from their good credit history.

What is a secured credit card?

• A card that requires no deposit.

• A card that offers unlimited credit.

• A card that is only available to non-students.

• A card that requires a security deposit which becomes your credit limit.

What is a potential risk of having a co-signer?

• The co-signer can use your credit score for their benefit.

• The co-signer is legally obligated to pay back any debts if you default.

• The co-signer can cancel your card at any time.

• The co-signer can take over your account.

Why should college students avoid applying for too many credit cards?

• It guarantees higher interest rates.

• It can be a red flag to card issuers.

• It automatically decreases your credit score.

• It can lead to a lower credit limit.

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

• 25%

• 35%

• 15%

• 50%

What is the recommended maximum credit utilization percentage?

• 30%

• 70%

• 90%

• 50%

Why is it important to monitor your credit card account regularly?

• To ensure you are spending enough to increase your credit limit.

• To keep track of your spending and detect any fraudulent activity.

• To automatically increase your credit score.

• To avoid paying any interest.

How often are you entitled to a free credit report from one of the three reporting bureaus?

• Once a month

• Once a year

• Every six months

• Every two years

What is the main benefit of starting to build credit early as a college student?

• It guarantees a scholarship for further studies.

• It helps you achieve financial goals and obtain better financial products in the future.

• It ensures you never have to work part-time.

• It allows you to avoid all financial responsibilities.