WorksheetsManaging Credit- Review
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
1. What are the two most important factors in calculating your credit score?
a)
Payment history and types of accounts
b)
Payment history and total debt
2.
2. Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. Which choice will help her pay off debt?
a)
Taking extra shifts at work to increase her income
b)
Applying for another credit card to use in case she runs out of cash paying off her debt
3.
3.Which of the following statements about credit scores does this bar graph support?
a)
Credit scores tend to drop as you grow older because you are more likely to miss a payment at some point
b)
It is more difficult for young people to borrow because they have less payment history for a lender to rely upon
4.
4. Which of the following would show up on a credit report?
a)
Salary of your current job
b)
Credit card payment history
5.
5. Which of the following methods of getting your credit score would involve paying a fee?
a)
Checking creditkarma.com
b)
Getting a score from myFICO.com
6.
6. Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?
a)
Make on-time payments
b)
Check his credit score
7.
7. Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?
a)
Ask his parents to cosign a credit card or add him as an authorized user on their credit card
b)
Take out some private student loans, even though he doesn't need them because he has grants and scholarships
8.
8. Which of the following individuals or groups would be the LEAST likely to look at your credit score?
a)
Credit card companies
b)
A bank representative who is helping you open a savings account
9.
9. Frank and Jasmere are each shopping for a new car for themselves. Each will need a $20,000 loan that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?
a)
Over the five year period, Jasmere and Frank will pay the same amount for the car loan
b)
Over the five year period, Frank will pay less because of a lower interest rate
10.
10. You have a credit card that you use regularly for small purchases with the goal of improving your credit score. Which strategy would have the GREATEST positive impact?
a)
Use less than 30% of the credit limit and pay it off in full every month by the due date
b)
Put the credit card in a drawer instead and don't ever use it
11.
11. What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?
a)
Make minimum payments
b)
High rate method
12.
12. Who tracks all of your credit information?
a)
Credit reporting agencies (Equifax, Experian and TransUnion)
b)
Federal government
13.
13. What is the general timeline to establish your first credit score?
a)
Six months after you first actively use your credit
b)
Once you pay all of your credit balances in full
14.
14. 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)
Contact the credit card company to have them fix it
b)
Call the police to report the possible identity theft
15.
15. Which of the following things should you have ready when contacting a credit reporting agency to report an error on your credit report?
a)
An explanation of the mistake and any evidence you have supporting your claim
b)
References from a non-family member vouching for your creditworthiness
16.
16. Which of the following could have a NEGATIVE impact on your credit score if done in a short period of time?
a)
Paying your bills on-time
b)
Applying for multiple credit cards
17.
17. Which best describes the Debt Snowball method for paying off debt?
a)
Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the highest balance
b)
Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the lowest balance
18.
18. Which of these represents a potential consequence of neglecting to pay your federal student loans?
a)
Wages or tax refunds can be garnished
b)
Driver’s license suspension
19.
19. What benefits do you receive by taking out a loan with a cosigner?
a)
You don’t get penalized for late payments
b)
You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit
20.
20. You're paying your credit card bill and your student loan payment each month, but you're falling behind on your auto loan payment. Which friend's advice could have a NEGATIVE impact on your credit score?
a)
Debbie says, "Stop making the credit card payment for a few months until you're caught up on the auto loan."
b)
Angie says, "Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family."
21.
21. Which response best completes the sentence "It's best to begin establishing credit when you're young because ________" ?
a)
Credit scores are free for anyone under the age of 25
b)
You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card
22.
22. Review this partial credit report, and then choose the response below that accurately depicts the information on the report.
a)
This borrower was never late with any of their credit payments
b)
This borrower was 30 days late on their May 2015 payment
23.
23. The amount you can charge to a secured credit card is limited by…
a)
The amount of money you deposit into an account as collateral
b)
How long you’ve had an account with the bank
24.
24. Which free credit report service is authorized by federal law but only accessible once per year?
a)
AnnualCreditReport.com
b)
Wallet Hub
25.
25. How can your credit score impact your financial well-being?
a)
Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
b)
It generally has no impact on your financial situation
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