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WorksheetsCredit Score & Money Management
Total questions: 20
Worksheet time: 13mins
What is the range of a credit score?
0-800
400-800
300-850
300-800
Your credit score number is a representation of your (a) health.
The amount of money that is owed to another institution or person is called ______.
Wealth
Debt
Interest rate
Short-term loan
Paying (a) on time helps increase your credit score.
How can you ruin your credit?
Having someone co-sign your loan
Not paying your bills
Getting a gas/apartment card
Cats
The agencies that calculate your credit score are the following:
Equifax
Exact credit
Capital One
Equifax
Experian
Transunion
Equifax
Expert Credit
TransAmerica
Some things that help "measure" your credit score are the following:
Amount of debt owed
Duration and type of loans
How much available "credit" you have that you do NOT use
All answers are correct
A "mortgage" loan is a loan that a bank gives to a person to buy a (a) .
An example of ways to build a credit history for yourself as a young person are the following:
Put a utility bill in your name
Open a low-interest credit card
Get a prepaid credit card with your bank and use it to pay bills
All answers are correct
True or false: Credit agencies monitor how you pay your loans/bills on time, and your score can change if you do not pay your bills on time.
TRUE
FALSE
If your credit score is close to 850, it is safe to say:
You have fantastic credit
You pay your bills on time
You manage your money correctly
All of the answers are correct
What is the purpose of a credit score?
A. It helps lenders determine if they can trust you with money
B. It serves as a number that represents how responsible you are with money
Both A and B
It has no effect on whether a bank will give you a loan
(a) is a measure of how well you pay your loans/bills on time.
What is a credit report?
A detailed report of a person's credit history prepared by a credit agency and used by a lender to determine the creditworthiness of a loan applicant
A detailed report of a bank's credit history prepared by a credit expert and used by consumers to determine the creditworthiness of a bank
A report that shows which credit cards are better than others
A report invented by Allan Greenspan and attributed to Al Gore
How can building a good credit history benefit a person?
It increases interest rates on loans
It eliminates the need to have a job
It qualifies them for better terms and interest rates on loans
It allows unlimited borrowing
Which items on a credit report will lower your credit score?
Bill paid on time
Current address
Soft inquiries
Late payments
Which of the following is most likely to have the highest credit score? Assume all have made regular monthly payments on time.
A first-year college student, 18 years old
A 20-year-old waitress with two active credit cards
A 40-year-old entrepreneur with two cars, a house, and four active credit cards
A 50-year-old person with five credit cards who rents their home.
You will have many options when it comes to using your money.
This is an amount that is borrowed from a bank or credit union.
Loan
Bank
Interest
Debit
Credit
Which option will NOT be available if you are behind on your loan payments?
A financial institution may offer you to pay part now and the rest after your next payday.
You can borrow money from friends and family.
You can ask to get out of the loan.
Your financial institution might allow you to defer the loan, but you will have to pay interest.
What will happen to your credit score if you do not manage your debt wisely?
You will not be able to track your credit score
Your credit score will go up
Your credit score will go down
It will not affect your credit score
