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WorksheetsManaging Credit
Total questions: 20
Worksheet time: 19mins
A key factor influencing credit scores is:
Recent inquiries
Monthly expenses
Martial status
Education level
All of the following are part of a credit report EXCEPT:
Spending Habits
Loan Repayment
Credit Limit Utilization
Current Credit Inquiries
All of the following are ways to get out of debt, EXCEPT...
Contact your lender to see if they can lower the interest rate on your loan
Increase your income by getting a second job
Stop paying your utility bills so you can cover your credit card expenses
Build a budget and cut spending
How can being authorized user on someone's credit card help you?
It lets you open new credit cards without approval
It automatically raises your credit score by 100 points
It can help build your credit history through the primary holder's account activity
It removes any negative entries from your credit report
Which of the following is TRUE about a credit report?
It is a complete history of one type of credit you have
Credit reports are maintained by the 5 main credit bureaus
You can get a copy of your credit report for free
You can get a credit report only when you're 21 years old
Which of the following does NOT contribute to your credit score?
Your payment history
Which banks issued your credit cards
Your debt-to-credit ratio
Length of credit history
Establishing credit early can help with:
Quick loan approvals
Higher credit card limits
Avoiding yearly credit checks
Getting better interest rates
Which of the following is TRUE about finding errors on your credit report?
You may have to file a dispute with each credit bureau
You should wait until the end of the month before reporting
Finding errors is common & is not a big deal
Overlooked errors may result in you paying a fine
The main advantage of a secured credit card is:
Higher spending limits
Reduced annual fees
Improving credit score
Earning cashback rewards
Why might older individuals typically have higher credit scores?
They have had more time to accumulate wealth
They have paid more taxes
They always earn more than younger individuals
They have longer credit histories
How often should you check your credit report for errors?
Only when applying for a major loan
Once a decade
At least once a year
Every month
Where can you get a free copy of your credit report?
annualcreditreport.com
freecreditreport.com
getmycreditreport.com
creditreport.gov
Using the debt snowball method, you make...
minimum payments on all of your loans
one large payment on one loan
minimum payments on small loans; pay extra on large loans
minimum payments on large loans; pay extra on small loans
When applying for a loan, why might a lender be interested in your credit score?
To determine if you actually need a loan
To set the loan's interest rate and terms based on risk
To know how much money you have in your bank account
To sell your personal information to third parties
Using the Avalanche Method, you...
pay off all your loans in the least amount of time
put extra money towards loans with the lowest interest rate
put extra money towards loans with the highest interest rate
make one large payment on the loan with the highest rate
Why is it important to have an emergency fund?
It helps you save for vacations and luxury purchases
It guarantees you will never go into debt
It can cover unexpected expenses like medical bills or job loss
It is required by law once you turn 18
What can debt collectors do if you fail to make payments on a loan?
They can have you arrested for not paying
They can withdraw money directly from your bank account without notice
They can request payment and report the debt to credit bureaus
They can raise the interest rate on all your other loans
What information can you find on a credit report?
Your medical insurance information
Your parents' and siblings' contact information
Your education level
Inquiries you've made on new lines of credit
Where can you access your credit score?
Only by visiting your bank in person
Through free services like AnnualCreditReport.com or your bank's app
Only by paying a monthly subscription to a credit bureau
By calling your employer's HR department
All of the following may access your credit report EXCEPT...
A landlord
A future employer
Colleges and universities
Insurance companies Insurance companies
