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Credit Score and Credit Card Knowledge

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

What is a credit score?

a)

A) A measure of your income

b)

B) A measure of your creditworthiness

c)

C) A measure of your spending habits

d)

D) A measure of your savings

2.

Which of the following is NOT a major credit bureau?

a)

Equifax

b)

TransUnion

c)

Experian

d)

FICO

3.

What is the typical range for a FICO credit score?

a)

300-850

b)

100-900

c)

200-800

d)

400-900

4.

Which factor has the largest impact on your credit score?

a)

Length of credit history

b)

Payment history

c)

Types of credit used

d)

New credit inquiries

5.

What is a secured credit card?

a)

A card that requires a security deposit

b)

A card with no annual fee

c)

A card with a low interest rate

d)

A card that offers rewards

6.

Which of the following actions can help improve your credit score?

a)

Closing old credit accounts

b)

Making timely payments

c)

Increasing your credit card balances

d)

Applying for multiple new credit cards

7.

What is the term for the maximum amount you can borrow on a credit card?

a)

Credit limit

b)

Credit balance

c)

Credit utilization

d)

Credit score

8.

What is an APR in terms of credit cards?

a)

Annual Payment Rate

b)

Annual Percentage Rate

c)

Annual Penalty Rate

d)

Annual Premium Rate

9.

Which of the following is a consequence of having a low credit score?

a)

Lower interest rates on loans

b)

Higher credit limits

c)

Difficulty getting approved for credit

d)

More favorable loan terms

10.

How often can you get a free credit report from each of the major credit bureaus?

a)

Once a month

b)

Once a year

c)

Twice a year

d)

Every two years

11.

What is a credit inquiry?

a)

A request to increase your credit limit

b)

A request to check your credit report

c)

A request to close a credit account

d)

A request to transfer a balance

12.

Which of the following is considered a good credit score?

a)

300-499

b)

500-649

c)

650-799

d)

800-850

13.

What is a balance transfer?

a)

Moving debt from one credit card to another

b)

Transferring money from your savings to your checking account

c)

Paying off your credit card balance in full

d)

Increasing your credit card limit

14.

Which of the following is a benefit of having a high credit score?

a)

Higher interest rates on loans

b)

Lower insurance premiums

c)

More credit inquiries

d)

Higher minimum payments

15.

Simone is dreaming of cruising down the highway in a shiny new car. But first, she needs to impress the bank with her 'Credit Score'. What exactly is this magical number that the bank will consider?

a)

The maximum amount of credit a borrower can use

b)

A yearly charge for credit card usage

c)

A measurement of someone's creditworthiness

d)

An initial cash payment for a large purchase

16.

is a three-digit number that rates your creditworthiness. The higher the score the more likely you are to

get approved for loans and for better rates.

a)

Federal Reserve

b)

CCC

c)

Credit Score

d)

Credit Card

17.

An arrangement to receive cash, goods, or services now and pay for them in the future.

a)

Credit

b)

Asset

c)

Interest

d)

APR