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Managing Credit

Total questions: 13

Worksheet time: 8mins

Name
Class
Date
1.

The two most important factors in calculating your credit score.

a)

Payment History

b)

Total Debt

c)

The balance in your checking account.

2.

All of the following would show up on a credit report EXCEPT...

a)

Student loan activity

b)

Credit card payment history

c)

Payment history of your car loan

d)

Salary of your current job

3.

You will pay a fee for your credit score from FICO.com

You can get it free by

a)

Checking your credit card or loan statement

b)

Talking to a non-profit counselor

c)

Checking creditkarma.com

d)

Go to Fico.com

4.

The single best way to improve your credit score is?

a)

Make on-time payments.

b)

Avoid paying your credit card bill if the balance is too high.

5.

Which of the following individuals or groups would be the LEAST likely to look at your credit score?

a)

Someone interviewing you for a job

b)

Credit card companies

c)

An insurance company reviewing your applicant for auto insurance

d)

A bank representative who is helping you open a savings account

6.

Credit reporting agencies (Equifax, Experian and TransUnion)

a)

Track all your credit information.

b)

Sell Bitcoin

7.

You find an error on your credit report: Your credit card account indicates that you are 60

days late on your payment but you have bank records indicating that you have always

made on-time payments. What should you do FIRST?

a)

Call your bank

b)

Contact the credit card company to have them fix it

c)

Cut up your credit card

8.

The amount you can charge to a secured credit card is limited by...

a)

The amount of money you deposit into the account as collateral.

b)

The number of items you can fit in the shopping bag.

9.

What is the high rate method for paying off debt?

a)

A strategy  to pay off multiple sources of debt if you want to pay the

lowest amount of interest over time.

b)

The strategy is to pay off multiple sources of debt if you want to pay the lowest balance item first.

10.

What is the general timeline to establish your first credit score?

a)

6 months after you first actively use credit.

b)

The first day you get a credit card.

c)

1 year after your first loan.

11.

A free credit report service is authorized by federal law but only accessible once per year. What is the name of this service?

a)

Annual Credit Report.com

b)

TransUnion

c)

Experian

d)

Wells Fargo Bank

12.

What are the most important things to look for on your credit report?

Select all that are correct.

a)

Outstanding or missing payments

b)

Accounts that you don’t  recognize

c)

Incorrect personal information

d)

Your pets name

13.

Explain the relationship between your credit report and your credit score.

Select all that are correct.

a)

Your credit report shows your credit history - your relationship with credit in the past -

b)

Your credit reports show items such as loan payments over time, late payments, and bankruptcies.

c)

Using the data in this

report, your credit score is determined to gauge how likely you are to pay back a future

loan.

d)

A credit report shows your credit score on the front cover.