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Unit 3 Review #1

Total questions: 12

Worksheet time: 5mins

Name
Class
Date
1.

A credit bureau is a business that gathers, stores, and sells credit information to other businesses.

a)

True

b)

False

2.

A credit score is calculated using a point system that takes into account a variety of factors listed on your credit report.

a)

True

b)

False

3.

Your credit history is a written summary of your borrowing and repayment performance.

a)

True

b)

False

4.

A higher credit score usually means a higher risk for the lender.

a)

True

b)

False

5.

Which of the following is a reason to be careful with credit?

a)

Helpful in emergencies

b)

Convenience

c)

Increased impulse buying

d)

It lets you purchase items now and pay for them later

6.

The Cs of credit worthiness include which of the following?

a)

Character

b)

Capital

c)

Capacity

d)

Conditions

7.

What is range of credit scores one could have?

a)

350 – 800

b)

300 – 850

c)

0 – 850

d)

0 – 800

8.

What is meant by payment history in relation to your FICO credit score?

a)

What types of credit are you using?

b)

Do you pay your bills and do you pay them on time?

c)

How much of your available credit are you using?

d)

How long have you been using each account?

9.

It is recommended that you have at least one credit card & that you manage it responsibly.

a)

True

b)

Fase

10.

All of the following make up the big three credit reporting agencies EXCEPT:

a)

Equifax

b)

Experian

c)

Federal Reserve

d)

TransUnion

11.

Which of the following MOST influences your credit score?

a)

Payment History

b)

Length of Credit History

c)

Amounts Owed

d)

Types of Credit Used

12.

Having a good credit score is important because it can impact __.

a)

your ability to get a driver’s license

b)

how much you will have to pay for college

c)

how much you will have to pay the government in taxes

d)

your ability to be approved for bank loans