WorksheetsManaging Credit
Total questions: 20
Worksheet time: 10mins
Which of the following is a benefit of maintaining a good credit score?
Higher interest rates on loans
More frequent credit checks
Better chances of loan approval
Increased monthly expenses
What is a potential consequence of having a low credit score?
Lower interest rates on loans
Difficulty in getting approved for new credit
Increased credit card limits
More favorable loan terms
What is a common reason for a sudden drop in your credit score?
Missing a credit card payment
Receiving a salary increase
Opening a new savings account
Paying off a loan early
What is the primary purpose of a credit report?
To provide a history of your credit activity
To determine your annual income
To track your spending habits
To list your personal assets
When applying for a loan, why might a lender be interested in your credit score?
To determine if you actually need a loan
To set the loan's interest rate and terms based on risk
To know how much money you have in your bank account
To sell your personal information to third parties
All of the following are part of a credit report EXCEPT:
Spending Habits
Loan Repayment
Credit Limit Utilization
Current Credit Inquiries
How long does a bankruptcy typically remain on a credit report?
3-5 years
7-10 years
12-15 years
Indefinitely
What is the effect of making only the minimum payment on your credit card each month?
It helps improve your credit score significantly
It can lead to higher interest charges over time
It prevents any interest from accruing
It results in immediate debt reduction
Failing to pay federal student loans may result in:
Reduced student loan interest
Higher credit score
Tax refund garnishments
Revocation of your degree
Which of the following does NOT contribute to your credit score?
Your payment history
Which banks issued your credit cards
Your debt-to-credit ratio
Length of credit history
Which of the following actions can help improve your credit score?
Closing old credit accounts
Maxing out your credit cards
Paying bills on time
Applying for multiple credit cards at once
A cosigner on a loan can help by:
Reducing monthly payments
False
Boosting approval odds
Offering collateral for the loan
Why might older individuals typically have higher credit scores?
They have had more time to accumulate wealth
They have paid more taxes
They always earn more than younger individuals
They have longer credit histories
Which of the following actions can negatively impact your credit score?
Keeping credit card balances low
Applying for multiple credit cards in a short period
Consistently paying bills on time
Maintaining a long credit history
What is the impact of closing a credit card on your credit score?
It can potentially lower your credit score
It guarantees a higher credit score
It always improves your credit score
It has no impact on your credit score
Establishing credit early can help with:
Quick loan approvals
Higher credit card limits
Avoiding yearly credit checks
Getting better interest rates
What information can you find on a credit report?
Your medical insurance information
Your parents' and siblings' contact information
Your education level
Inquiries you've made on new lines of credit
Using the debt snowball method, you make...
minimum payments on all of your loans
one large payment on one loan
minimum payments on small loans; pay extra on large loans
minimum payments on large loans; pay extra on small loans
What is the recommended credit utilization ratio to maintain a healthy credit score?
30%
10%
50%
0%
What is the impact of having a high credit utilization ratio on your credit score?
It can lower your credit score
It improves your credit score
It has no effect on your credit score
It guarantees a higher credit limit
