WorksheetsReview Unit 4/5Part B Credit Cards
Total questions: 18
Worksheet time: 9mins
A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.
True
False
How long does negative information remain on my credit report?
Until I am in good standing
1 year
4 years
7 years
Which of the following is TRUE about a credit report?
It is a complete history of one type of credit you have
Credit reports are maintained by the 5 main credit bureaus
You can get a copy of your credit report for free
You can get a credit report only when you're 21 years old
Which of the following does NOT contribute to your credit score?
Your payment history
Which banks issued your credit cards
Your debt-to-credit ratio
Length of credit history
All of the following are benefits of having a good credit score EXCEPT
You can get a higher return on your Retirement fund
Higher interest rate on credit cards and loans
Easier approval for rental apartments and houses
Better car insurance rates
Which of the following is TRUE about finding errors on your credit report?
You may have to file a dispute with each credit bureau
You should wait until the end of the month before reporting
A late payment will stay on my report for 10 years
Overlooked errors may result in you paying a fine
Why might someone have a thin file?
They've had multiple lines of credit open for 15 years
They only have 4 types of credit open
The credit bureaus mistakenly think you have passed away
You are relatively new to establishing credit
How can having a thin file impact you?
You are likely to get lower interest rates on your loans
You may be offered new lines of credit in the mail
Lenders may decline your application for a loan
Most landlords will approve you to rent an apartment or home
How are a credit score and credit report related?
A credit report is determined by the factors in your score
A credit score is determined by the factors in your report
Credit reports are less important than your credit score
They're not related at all
What information can you find on a credit report?
Your medical insurance information
Your parents' and siblings' contact information
Your education level
Inquiries you've made on new lines of credit
All of the following may access your credit report EXCEPT...
A landlord
A future employer
Colleges and universities
Insurance companies
Jim is 23 and has 1 credit card. What would be the best way to improve his credit score?
Get 4 more credit cards in the next 3 months
Diversify his credit - get an auto loan for the car he needs
Make sure he makes his payments in full & on time
Increase his credit utilization rate to 45%
True or False: A cosigner's credit history can be affected by the loan they are cosigned on.
True
False
What information on a Schumer Box should you focus on when choosing a credit card?
The term of the credit card
Annual Percentage Rate (APR)
Grace Period
Fees
How do you avoid paying interest on your credit card (or any other loan for that matter)?
Always make the minimum payment on time
Pay interest 1st, then pay what you can on leftover balance
Always make the full payment on time
Pay the principal 1st, then pay what you can on interest
Which is TRUE when you make only the minimum payment each month?
You are charged interest on the remaining balance
Your credit line is restored to its maximum amount
Credit card companies have permission to sell your info
It is the fastest way to pay off your debt
T/F: Landlords are required to submit your payment history, which can boost your credit score.
True
False
How are credit cards and debit cards different?
They're both linked to a checking account in different ways
Some debit cards say VISA on them; credit cards don't
With a credit card, you are borrowing from yourself
A credit card can offer perks such as purchase protection
