WorksheetsCredit Fundamentals Review # 1.
Total questions: 20
Worksheet time: 14mins
What is a credit score?
A measure of a person's creditworthiness
A measure of a person's salary
A measure of a person's savings
A measure of a person's spending habits
What factors determine a person's credit score?
Employment of employment
Age
Income
Payment history and amount of debt
How is a credit score calculated?
By taking into account a person's income and spending habits
By taking into account a person's debt level and payment history
By taking into account a person's employment history
By taking into account a person's savings and investments
What is the range of a credit score?
0-50
0-500
300-850
500-900
What is a credit history?
A record of a person's spending habits
A record of a person's salary
A record of a person's loans and payments
A record of a person's savings
How long does negative information stay on a person's credit history?
6 months
1 year
7 years
12 years
Can a person dispute incorrect information on their credit history?
No
Only with a Lawyer
Only with a credit agent
Yes
What is a credit report?
A record of a person's spending habits
A record of a person's taxes
A record of a person's savings
A comprehensive summary of a person's credit history
Who can access a person's credit report?
The local business board
Any individual
Only the person themselves
Creditors and lenders
How often is a person entitled to receive a free credit report?
Once a year
Every 6 months
Every three years
Every other year
What happens if a person has a low credit score?
They cannot obtain loans
They can only obtain loans with high interest rates
They are automatically denied for loans
They are only approved for loans with high interest rates
The three credit bureaus are
Experiant, TransUnion, and Equifall
Equifax, TransStation, and Experian
Experian, Equifax, and TransStation
Experian, Equifax, and TransUnion
The website you use to check your credit reports is
www.annualcreditcheck.com
www.annualcreditreport.com
www.annualcreditscores.com
www.annualcreditlist.com
To build credit history, you can (select all that apply)
put utility bills in your name when you rent a house or apartment
develop the habit of paying all your bills on time each month
miss your student loan payment periodically
open a credit card and use it responsibly by paying it off in full each month
make less than the minimum payment on your credit card
What are the long-term negative effects of identity theft? (hint: choose 2 correct answers)
Inability to access and use your bank account
A poor credit score
Extremely time consuming to fix the problem
You will likely lose your job
A credit report is best defined by which of the following statements?
A score that represents your credit reputation
A summary of an individual's credit history
A compilation of all public and private records relating to your finances
An accounting of legal action taken against you to collect debts
Which of the following events will trigger the creation of a credit report?
I. Declaring bankruptcy
II. Taking out a student loan
III. Borrowing money from a company
IV. Marriage or divorce
I, II, III, and IV
I and III only
II and III only
I, II, and III only
One important reason to review your credit report, at least annually, is to guard against:
Bankruptcy
Becoming over-indebted
High-interest rat loans (high-cost debt)
Identity theft
Click on the image to read the case first: Which of the following actions is NOT a good way for Tom to improve his credit score?
Make all his payments on time
Pay off high-interest debt
Max out his credit cards
Check his credit report regularly
Click on the image to read the case first: Which of the following is the best way for Lisa to dispute the error on her credit history?
Contact the credit bureau by phone
Send a letter to the credit bureau
Submit a dispute online
Hire a credit repair company
