WorksheetsFF_VA_U5__Managing Credit
Total questions: 20
Worksheet time: 10mins
When applying for a loan, why might a lender be interested in your credit score?
To determine your income level
To set the loan's interest rate and terms based on risk
To assess your employment history
To evaluate your savings account balance
Which of the following is TRUE about a credit report? It is a complete history of one type of credit you have , Credit reports are maintained by the 5 main credit bureaus , You can get a copy of your credit report for free , You can get a credit report only when you're 21 years old
It is a complete history of one type of credit you have
Credit reports are maintained by the 5 main credit bureaus
You can get a copy of your credit report for free
You can get a credit report only when you're 21 years old
Failing to pay federal student loans may result in:
Reduced student loan interest
Higher credit score
Tax refund garnishments
Revocation of your degree
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
A cosigner on a loan can help by:
Boosting approval odds
Reducing the loan amount
Increasing the interest rate
Shortening the loan term
Establishing credit early can help with: Quick loan approvals, Higher credit card limits, Avoiding yearly credit checks, Getting better interest rates
Quick loan approvals
Higher credit card limits
Avoiding yearly credit checks
Getting better interest rates
Using the Avalanche Method, you...
put extra money towards loans with the highest interest rate
focus on paying off the smallest loans first
make minimum payments on all loans
consolidate all loans into one payment
All of the following are part of a credit report EXCEPT: Spending Habits, Loan Repayment, Credit Limit Utilization, Current Credit Inquiries
Spending Habits
Loan Repayment
Credit Limit Utilization
Current Credit Inquiries
Which types of debt usually CANNOT be erased or reduced?
Credit card debt
Federal student loans
Personal loans
Medical debt
How often should you check your credit report for errors?
Every month
At least once a year
Every two years
Only when applying for a loan
A key factor influencing credit scores is:
Recent inquiries
Monthly expenses
Marital status
Education level
Which of the following does NOT contribute to your credit score?
Your payment history
Your debt-to-credit ratio
Length of credit history
Which banks issued your credit cards
Which of the following is TRUE about finding errors on your credit report? You may have to file a dispute with each credit bureau , You should wait until the end of the month before reporting , Finding errors is common & is not a big deal , Overlooked errors may result in you paying a fine
You may have to file a dispute with each credit bureau
You should wait until the end of the month before reporting
Finding errors is common & is not a big deal
Overlooked errors may result in you paying a fine
The main advantage of a secured credit card is:
Building a savings account
Improving credit score
Lowering interest rates
Instant approval
What can debt collectors do if you don't make payments towards your loans?
Call you between 8am-9pm to talk to you about your loans.
Send you a letter once a year to remind you of your debt.
Report your debt to credit bureaus every month.
File a lawsuit against you immediately.
How long does a bankruptcy typically remain on a credit report?
3-5 years
5-7 years
7-10 years
10-15 years
Why might older individuals typically have higher credit scores?
They have longer credit histories.
They have fewer credit accounts.
They spend less money overall.
They are more likely to pay in cash.
Where can you get a free copy of your credit report?
annualcreditreport.com
freecreditreport.com
creditreportfree.com
mycreditreport.com
Using the debt snowball method, you make...
minimum payments on large loans; pay extra on small loans
equal payments on all loans; ignore small loans
maximum payments on large loans; pay minimum on small loans
no payments on large loans; focus only on small loans
All of the following may access your credit report EXCEPT...
A landlord
A future employer
Insurance companies
Colleges and universities
