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Pre and Post - Credit Score Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following service providers may use credit scores to decide whether a person can buy a service and/or what price he or she will pay?

a)

Cell phone company

b)

All of the above

c)

Home insurer

d)

Mortgage lender

e)

Credit card issuer

2.

On a $20,000, 60-month auto loan, about how much more would a borrower with a bad credit score pay than a borrower with a good report?

a)

Under $1,000

b)

$1,000-$3,000

c)

$3,000-$5,000

3.

Which of the following does a credit score mainly indicate?

a)

Knowledge of consumer credit

b)

Attitude toward consumer credit

c)

Amount of consumer debt

d)

Risk of not repaying the loan

e)

Financial resources to pay back the loan

4.

Which of these groupings contains three factors that are all used to calculate a credit score?

a)

A person's age, missed loan payments, and marital status

b)

Missed loan payments, high balances on credit cards, and ethnic origin

c)

Marital status, high balances on credit cards, and personal bankruptcy

d)

A person's age, high balances on credit cards, ethnic origin

e)

Missed loan payments, high balances on credit cards, and length of credit history

5.

Who collects the information that are used for credit scores?

a)

FICO and VantageScore Solutions

b)

Three main credit bureaus: Experian, Equifax, and TransUnion

c)

Individual lenders

d)

Federal government

e)

All of the above

6.

Does each consumer have just one credit score?

a)

Yes

b)

No

7.

Which of the following actions helps a consumer raise a low score or maintain a high one?

a)

Make all loan payments on time

b)

Keep credit card balances under 30% of the credit limit

c)

Avoid opening several credit card accounts at the same time

d)

All of these

e)

None of these

8.

When will multiple inquiries (pulls) about getting a mortgage or auto loan lower your FICO score?

a)

Each time one makes an inquiry

b)

Only when one makes at least five inquiries

c)

Never during a one- to two-week window

d)

Never

9.

How often should you ask for a free credit report, so you can check for accuracy?

a)

Every four months

b)

Every quarter

c)

Every year

10.

When you cannot resolve a complaint to a credit bureau or lender about your credit report or credit score, which of these federal agencies is best suited to help you resolve the problem?

a)

Federal Reserve Board

b)

Consumer Financial Protection Bureau

c)

Department of Justice

11.

True or False. Mortgage lenders and credit card issuers often use credit scores to help decide whether they will extend credit, and if so, at what interest rate.

a)

TRUE

b)

FALSE

12.

True or False. Businesses often use credit scores to help decide who they should hire.

a)

TRUE

b)

FALSE

13.

True or False. Many auto and home insurers use credit scores to help determine insurance premiums.

a)

TRUE

b)

FALSE

14.

True or False. Cell phone companies, electric utilities, and landlords may use credit scores to decide whether they will require a security deposit and, if so, how large it should be.

a)

TRUE

b)

FALSE

15.

Which of these are used to calculate credit scores?

a)

None of these

b)

Age, ethnic origin, and marital status

c)

Employment history, savings, and income

d)

Number of dependents, education level, and job title

16.

Each of the three main credit bureaus – Equifax, Experian, and TransUnion – is required by federal law to provide a free copy of your credit report ____ time(s) a year upon request.

a)

one

b)

three

c)

twelve

17.

True or False. Lenders may not discriminate against you based on your credit scores.

a)

TRUE

b)

FALSE

18.

True or False. Lenders can charge you a higher interest rate if you have a low credit score, but they cannot refuse to loan you money.

a)

TRUE

b)

FALSE

19.

True or False. If you miss a payment on a loan, that will hurt your credit score until you make the payment.

a)

TRUE

b)

FALSE

20.

If you are maxed out on your credit card, your debt-equity ratio is ____ %.

a)

0

b)

10

c)

20

d)

30

e)

100