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Worksheets4.1 - Basics of Managing Credit
Total questions: 11
Worksheet time: 23mins
What is the name given to the numerical rating that you receive based on your credit habits?
Credit Report
Credit Score
Credit History
Credit Karma
Which is NOT a good way to establish credit?
Pay off balance every month
Apply for multiple accounts
Make payments on time
Open a minimal amount of accounts
How do you calculate Net Worth?
Assets-Liabilities
Liabilities-Assets
Age+Assets
Age+Assets-Liabilities
A Credit Score is the same thing as a Credit Report
TRUE
FALSE
Having a good credit report and score is important because...
lenders look at it when you want to buy or rent a home, open a credit card or finance a car
Allows companies to pay you more
banks only open accounts with good credit
you can get higher interest rates on loans
Net worth is important because...
it lets you know if you are headed finacially in a good direction
it allows creditors to do better business with you
it will allow you a better retirement plan
it is more important than a credit score
When using credit, you should ask....
will this item be here next month?
how long will it take to pay it off?
can I cover the monthly payments?
can I buy this item with 2 credit cards
If Toni is trying to calculate her net worth, which of the following items would go on the liabilities list?
Original sale price of her car
Her Mortgage
Savings account balance
Value of her 401(k) plan
Each of the following plays a key role in determining your credit score EXCEPT:
Payment history
Debt-to-credit ratio
Average interest rate
Number of times you've opened new credit accounts or had new requests for credit
What is a credit report?
A number that helps lenders assess how well you've managed your financial obligations in the past.
A compiled history of all your accounts and payments across all your credit products.
A reflection of how much available credit you're using.
A report on your income and expenses.
Who maintains credit reports?
Banks.
Credit agencies.
The government.
Lenders.
