Font size
WorksheetsCredit Mastery
Total questions: 30
Worksheet time: 23mins
What is manufactured spending?
Spending money on manufactured goods
Buying things with your credit card and redirecting those purchases to something more useful or profitable
Spending money on anything without a payment option
What is the risk associated with manufactured spending?
Getting higher credit card limits
Getting cashback or rewards points for the transaction
Getting your credit card limit reduced or getting your card shut down
What is the closing date of a credit card?
The date the credit card company reports your history to the credit bureaus
The last day of a credit card's billing cycle and when the credit card statement gets compiled for the account
The date your bill is due
What is the process of hiding utilization?
Paying the credit card balances to $0 for cards due on the first half of the month by MS’ing your debt to the cards due on the second half
Maxing out your credit cards and not paying them off
Removing any old inquiries from your credit report
How can you hide utilization when your credit cards are maxed?
By using the same process of moving your debt to another card
By not paying your bills on time
By not using any credit cards
What is the main issue many people are dealing with right now?
Lack of education
Poor credit score
High interest rates
No access to credit cards
Why should you work to improve your credit score?
To open the door to a plethora of opportunities
To avoid high interest rates and fees
To have a better understanding of financial literacy
All Of The Above
What are some of the things you can leverage credit cards with?
Free Traveling, College Tuition, and Digital Assets
Stock Market, Funding new businesses, and Real-Estate Investing
New streams of income, funding new businesses, and college tuition
All of the above
Why is it important to learn about credit literacy?
To be able to liquidize your credit card.
To avoid using cash advances.
To uncover the secrets on what to do with your credit moving forward.
To use credit cards only for purchases you can afford to make.
Why is it important to learn how to liquidize your credit card?
To avoid using cash advances
To increase your credit limit
To earn more reward points
To improve your credit score
What is the main benefit of having business credit?
Higher personal credit score
Access to funding for business growth
Lower Taxes
Increased Personal Income
What is the purpose of creating a unique business name?
To sound creative
To make it easy to remember
For Fun
To have an original unused business identity
What is the recommended domain for a business email address?
@msn.com
@gmail.com
@yourcompany.com
@yahoo.com
Why is it important to have a business address separate from a home address?
To decrease fundability
To establish an online presence
To avoid potential lenders
To establish business credibility
Why is it recommended to have a toll-free 1-800 number for your business?
It's easier to remember
It adds credibility to your business structure
It's more affordable
It's faster to get
What is the purpose of obtaining an Employer ID (EIN) number for your business?
To separate your personal and business finances
To avoid registering your business
To decrease your borrowing potential
To avoid obtaining a business bank account
What is the recommended type of bank for startups?
Credit Union
Regional Bank
National Bank
Community Bank
What is the purpose of using Credit Boards?
To share personal information
To avoid getting funding
To find out where credit agencies and financial institutions pull from
To avoid building business credit
What is a paydex score?
A measure of your personal creditworthiness
A measure of your business creditworthiness
A measure of your tax liabilities
A measure of your personal income
What is the purpose of signing up for a DUNS number?
To avoid building business credit
To share personal information
To establish an online presence
To start building your paydex score
What is credit?
A tool to assist in building your financial future
A method of paying for goods and services
A bad thing to have
What is the credit score range?
200-700
300-850
400-900
Which of the following is not one of the five major factors that determine your credit score?
Payment History
Debt usage
Length of credit history
Number of credit cards
What percentage of your credit score does FICO claim is based on payment history?
10%
25%
35%
50%
What is credit utilization?
The amount of credit limit your using
The amount of credit limit you have available
The amount of money you owe
How does debt usage impact your credit score?
It has no impact
it can increase your score
it can decrease your score
it has minimal impact
Which of the following is an example of an installment account?
credit card
student loan
gas station card
bus card
Which of the following is not a factor in determining the age of your credit accounts?
The number of accounts
The type of accounts
The average age of accounts
What is the difference between a hard inquiry and a soft inquiry?
Hard inquiries do not affect your credit score, while soft inquiries do
Soft inquiries do not affect your credit score, while hard inquiries do
Both hard and soft inquiries affect your credit score negatively
What is the purpose of credit reporting?
To make short term loans
To assess your risk level and rates
To gather and store credit data
All of the above
