Worksheets13.10 Credit Reports and Scores Practice Quiz
Total questions: 38
Worksheet time: 19mins
What is a "Debtor"?
A person who lends money.
A person who owes money.
A person who manages money.
A person who invests money.
What is a "Delinquent/Late Payment"?
A payment made in advance.
A payment that is past due.
A payment made on time.
A payment that is canceled.
What is considered a "Good Credit Score" according to the FICO model?
Below 600
Between 600 and 650
Above 700
Exactly 650
What is a "Hard Inquiry"?
A credit check that does not affect your credit score.
A credit check by a lender that can slightly affect your credit score.
A credit check for employment purposes.
A credit check for educational purposes.
Which of the following is an example of "Installment Credit"?
Credit card
Mortgage
Overdraft
Line of credit
What is "Interest" in the context of borrowing money?
The original amount of money borrowed.
The cost of borrowing money, usually expressed as a percentage.
A fee for opening a credit account.
A penalty for late payment.
What does "Lien" mean?
A type of loan.
A legal claim against your property as security for a debt.
A record of your payment history.
A type of credit score.
What is "Revolving Credit" also known as?
Installment credit
Closed-end credit
Open-end credit
Secured credit
What is a "Soft Inquiry"?
A credit check that affects your credit score.
A credit check for lending purposes.
A credit check for pre-approved offers or background checks that does not affect your credit score.
A credit check for mortgage applications.
What is the "Principal" in a loan?
The total cost of borrowing, including interest and fees.
The original amount of money borrowed.
The interest rate on the loan.
The monthly payment amount.
What does APR stand for in the context of borrowing money?
Annual Payment Rate
Annual Percentage Rate
Annual Principal Rate
Annual Penalty Rate
Which of the following is a type of closed-end credit?
Credit Card
Mortgage
Overdraft
Line of Credit
What is the impact of declaring bankruptcy on your credit?
It has no impact
It has a minor positive impact
It has a major negative impact
It improves your credit score
What is a credit freeze?
A method to increase your credit limit
A security measure to prevent access to your credit report
A way to lower your interest rates
A type of loan with no interest
Which of the following is NOT a major credit bureau?
Equifax
Experian
TransUnion
CreditKarma
What does credit utilization refer to?
The total amount of debt you owe
The percentage of available credit you are using
The number of credit accounts you have
The interest rate on your credit card
What is a credit report?
A summary of your monthly expenses
A detailed report of your credit history
A list of your bank account balances
A report of your annual income
What is the maximum amount you can borrow on a credit card called?
Credit Limit
Credit Score
Credit Balance
Credit Inquiry
What is the term for when a creditor tries to recover a debt you haven't paid?
Credit Inquiry
Collection
Credit Freeze
Credit Utilization
What is the formula for calculating credit utilization?
Current BalanceCredit Limit
Credit LimitCurrent Balance
Credit Limit×Current Balance
Credit Limit+Current Balance
What is credit?
Credit is goods, services, and/or money received in exchange for a promise to pay back a definite sum of money at a future date
What is a lender?
A lender is person or organization who makes funds available for others to borrow.
How is a credit report created?
If credit has never been used (or reported) an individual will not have a credit report
True
False
Who can view my credit history?
What are the four categories of information found in a credit report?
What information is NOT included in a credit report?
Consumer Information
Public Record Information
Credit Account Information
What are the types of information about credit accounts?
type of credit, loan amount or credit limit, date, account balance, payment information
Borrower repays a specified number of equal payments
Installment Credit
Revolving Credit
Line of credit established in advance
Installment Credit
Revolving Credit
Examples of open end credit:
Credit cards,
School loans
Car loans
Examples of revolving credit:
Car loans
Student loans
Credit cards,
What is a collection agency?
Businesses hired by lenders to pursue payments on debts not paid back according to contract terms
When an individual or business is not able to repay outstanding debts
Taxes not paid in full
Borrower fails to keep up with mortgage payments and the lender takes possession of the property
What is an inquiry in the context of credit?
What does CRA stand for?
Credit history only affects credit.
True
False
Credit history can affect your insurance rates.
True
False
Having no credit history may be just as challenging to a consumer as having a negative history
True
False
