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WorksheetsManaging Credit
Total questions: 25
Worksheet time: 12mins
How can you build a positive credit history as a college student?
Get a credit card but don't use it to avoid more debt
Spend up to your credit limit each month
Become an authorized user on an adult's card
Make only the minimum payment each month
T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.
True
False
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
All of the following are benefits of having a good credit score EXCEPT...(hint: choose 2 correct answers)
You can get a higher return on your Retirement fund
Higher interest rate on credit cards and loans
Easier approval for rental apartments and houses
Better car insurance rates Better car insurance rates
Why might someone have a thin file? (hint: choose 2 correct answers)
They've had multiple lines of credit open for 15 years
They only have 4 types of credit open
The credit bureaus mistakenly think you have passed away
You are relatively new to establishing credit
How are a credit score and credit report related?
A credit report is determined by the factors in your score
A credit score is determined by the factors in your report
Credit reports are less important than your credit score
They're not related at all
Where can you get a free copy of your credit report?
annualcreditreport.com
freecreditreport.com
getmycreditreport.com
creditreport.gov
How can having a thin file impact you?
You are likely to get lower interest rates on your loans
You may be offered new lines of credit in the mail
Lenders may decline your application for a loan
Most landlords will approve you to rent an apartment or home
Jim is 23 and has 1 credit card. What would be the best way to improve his credit score? (hint: choose 2 correct answers)
Get 4 more credit cards in the next 3 months
Diversify his credit - get an loan for the car he needs
Make sure he makes his payments in full & on time
Increase his credit utilization rate
What type of credit score is this 570?
Average
Great
Poor
Excellent
What does credit measure?
How likely someone is to pay back a loan
How well someone has made payments in the past
How trustworthy someone is with money
All of the above
What range of scores describes people with “good” credit?
350 – 619
620 – 659
660 – 749
750 – 850
What is a loan term?
The amount of time a revolving line of credit can be open
The payment of income to a savings account in regular payments over a set period of time.
The period in which the loan is to be repaid, each payment broken down into individual installments
Specifically related to the black market for human organs, and typically meant as the length of time one's kidney will be used for other purposes
