WorksheetsF6 Understanding Credit Score
Total questions: 12
Worksheet time: 6mins
What is the main purpose of a credit score?
To show how much money you have saved
To measure your income and expenses
To help lenders decide whether to lend you money
Credit score is a range of numbers that helps lenders decide whether to approve someone for a loan.
What is the lowest possible credit score a person can have?
0
100
300
Credit score is a range of numbers that helps lenders decide whether to approve someone for a loan.
What is the highest possible credit score a person can have?
300
850
900
Each credit score number has a matching rating.
What credit rating does a score of 640 represent?
good
fair
poor
very good
excellent
Each credit score number has a matching rating.
What credit rating does a score of 780 represent?
Good
Very Good
Fair
Poor
Excellent
Many factors go into the calculation of a credit score.
What is one factor that affects your credit score?
How often you use cash
How long you have had credit accounts
How much money you earn
Having a low credit score has several drawbacks.
What is one potential drawback of having a poor or fair credit score?
You may have to pay higher interest rates
You may have to file for bankruptcy
You may lose your job
The main purpose of credit score is for lenders to decide whether or not to approve someone for a loan, mortgage, or credit card.
What is one other purpose of your credit score besides applying for loans or credit cards?
renting an apartment
booking a flight
voting in an election
Many factors go into the calculation of a credit score.
What is one factor that affects your credit score?
Your marital status
Your income level
Your payment history
Having a high credit score and excellent rating has many financial benefits.
What is the main benefit of having a very good or excellent credit score?
You can get free credit reports
You can get the best interest rates available
You can get cash back rewards and bonuses
Banks rely on credit scores to determine if a person qualifies for a loan, and which interest rate to offer to them.
Which of these credit scores would result in the lowest interest rate on a loan?
350
825
900
Banks rely on credit scores to determine if a person qualifies for a loan, and which interest rate to offer to them.
Which of these credit scores would result in the highest interest rate on a loan?
250
350
825
