WorksheetsAdvanced Topics Midterm Review
Total questions: 29
Worksheet time: 32mins
What is considered a good credit score by most lenders?
500-600
600-700
700-750
750 and above
Which of the following factors does NOT affect your credit score?
Your income level
Your payment history
The amounts owed
Length of credit history
What is the most important factor in determining your credit score?
Types of credit in use
New credit
Payment history
Amounts owed
What range does the FICO score fall within?
300-850
400-900
500-950
600-1000
Why is it important to have a good credit score?
It affects your ability to rent an apartment
It determines your eligibility for certain jobs
It influences the interest rates on loans and credit cards
All of the above
How can you improve your credit score?
By frequently applying for new credit cards
By paying your bills on time
By using the maximum limit on your credit card
By closing old credit accounts
What is the impact of a low credit score?
Higher interest rates on loans and credit cards
Decreased chances of loan approval
Difficulty in renting an apartment
All of the above
How long does negative information (like late payments) stay on your credit report?
2 years
5 years
7 years
10 years
What percentage of your credit score is based on your payment history?
10%
20%
35%
50%
Which action can negatively affect your credit score?
Checking your own credit score
Applying for multiple credit cards at once
Paying off a loan early
Using less than 30% of your credit limit
What does a credit score range of 300-579 signify?
Excellent credit
Good credit
Fair credit
Poor credit
How often should you check your credit report?
Once a week
Once a month
Once a year
Every 5 years
What is the effect of having a mix of credit types (e.g., mortgage, car loan, credit cards) on your credit score?
It has no effect
It can improve your score
It can lower your score
It initially lowers your score, then improves it
What is the consequence of maxing out your credit card?
It improves your credit score
It has no effect on your credit score
It can lower your credit score
It temporarily increases your credit limit
What is a credit utilization ratio?
The ratio of your income to your debt
The percentage of credit you are using compared to your total available credit
The ratio of your secured loans to unsecured loans
The percentage of your monthly income that goes towards paying debts
How does closing an old credit account affect your credit score?
It improves your credit score
It has no effect on your credit score
It can lower your credit score
It temporarily increases your credit limit
What is the ideal credit utilization ratio to maintain a good credit score?
0-10%
15-25%
30-40%
Less than 30%
How can having a long credit history affect your credit score?
It has no effect
It can improve your score
It can lower your score
It initially lowers your score, then improves it
What is the impact of a high credit score on loan interest rates?
No impact
Higher interest rates
Lower interest rates
Variable interest rates based on the economy
Which of the following is NOT a way to improve your credit score?
Increasing your credit limit
Paying off debt in collections
Opening several new credit accounts at once
Keeping old credit accounts open
What percent of Sherri's total budget is put into cable and cell phone?
5%
9%
13%
17%
Which statement IS supported by the information in the table?
More than 1/2 of Sherri's monthly income is spent on rent.
Sherri puts 15% of her monthly income into savings.
More than 1/4 of Sherri's monthly income is spent on utilities , cable and groceries.
Sherri spends 14% of her monthly income on her cell phone and other expenses.
The graph above represents a family’s monthly budget. The family’s income is $3,125. How much money does the family spend on utilities, transportation costs, and savings?
$1000.93
$1093.75
$1937.50
$2037.50
