WorksheetsEPF Fall 25 Credit Scores and Credit QUIZ
Total questions: 45
Worksheet time: 5hrs 4mins
When may a person view their credit report for free?
At any time and an unlimited amount of times
Once per year, from each of the credit reporting agencies
A person may not view their report
Only when a person has sufficient financial resources
Lauren no longer wants her Belk credit card. What is the best thing she can do with the credit card?
File the credit card away for use at a later time.
Let a family member use the card.
Keep the credit card in her wallet in case she needs an ID.
Close the account by phone and in writing, then destroy the card.
When Ben attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describes what this likely means for Ben.
The interest rate on his loan will be lower, since his credit score is low.
The purchase price of the item he is trying to purchase will be higher due to his low credit score.
The monthly loan payments will be lower due to his lower credit score.
The interest rate on the loan will be higher, since his credit score is low.
Jaiden is 18-years-old and has applied for credit for the first time. His credit application was declined because he has no credit history. What would you recommend Jaiden do to build his credit history?
Acquire several credit cards.
Obtain a secured credit card.
Reapply for the credit but include a letter of recommendation.
Apply for a different credit card.
Zade's credit application has been declined because of his negative credit history. Which statement is most likely true?
He pays his bills consistently and on time.
He has applied for 4 credit cards and a car loan in the past 6 weeks.
He has received 3 traffic tickets in the past 3 months.
He holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.
Which of the following is not included in an individual's credit report?
Current and past addresses
Account balances
Medical information
Bankruptcies, foreclosures, evictions, liens, repossessions
Emma wants to develop a positive credit history. How can she do this?
Maintain reasonable amounts of credit
Have one type of credit account
Pay cash for the majority of purchases
Open credit accounts in her parents' names
Mrs. Ogle was trying to get a loan for a new car. When the bank looked at her credit report, they saw her score was a 780. Based on this number, what will the bank determine?
That Mrs. Ogle has excellent credit and they will loan her money for the car at a low interest rate.
That Mrs. Ogle has OK credit and they will loan her money for the car but at an interest rate 1 point higher.
That Mrs. Ogle does not have good credit but they will loan her money at a higher interest rate.
That Mrs. Ogle is sketchy, has not paid her bills, and they will deny her loan application.
BB&T is a bank that makes funds available for others to borrow. BB&T is considered the
Lender
Borrower
Credit reporting agency
Co-signer
Mr. Taft signed on a loan for his son, Ethan. If Ethan does not make the payments on the loan, Mr. Taft will have to repay the loan. Mr. Taft is the
Borrower
Lender
Co-signer
Collection agent
A record of the borrower's past loans and credit-related transactions is called
Credit score
Credit report
Credit limit
Credit history
Which of the following is NOT included as a factor of in determining your credit score?
Level of Education
What is a number that helps a lender predict how likely an individual is to repay a loan?
Credit history
Credit score
Collateral
Checking Account
Which is a very good credit score?
672
555
713
820
Which of the following is one of the 3 nationally recognized credit bureaus?
Equifax
Federal Reserve
Postal Credit
TripleUnion
Your credit score is configured off of which of the following EXCEPT?
Payment history
Debt-to-Income ratio
Grades in School
Length of credit history
Numerous credit applications in a short period of time have what type of impact on one's credit score?
Positive Impact
Negative Impact
The most common credit scoring system is called?
FCO
FECO
FISO
FICO
The credit scores range from
300-800
250-950
30-900
300-850
What does APR mean?
Average Person Ratio
Annual Percentage Rate
Always Pay Remotely
Apples Peas & Rice
The amount charged if your payment is received after the billing due date.
late payment fee
that's not good fee
withdrawal fee
loser fee
The maximum amount you are allowed to carry as a balance of debt on the card
interest
APR
credit limit
all of these
Which one is considered a danger of using a credit card?
no cash needed
leads to overspending
convenient
earns rewards
Your credit score is configured off of which of the following EXCEPT?
Payment history
Amount owed
Marital status
Length of credit history
Credit "pulls" are classified two ways--one affects credit the score and the other does not.
Hard and soft
Soft and Malleable
Hard and investigative
Investigative and soft
Current debts are considered by lending institutions when a credit application is submitted for a loan.
TRUE
FALSE
The interest rate on loans ______ as credit scores goes down.
decreases
increases
stagnates
bottoms out
True or False: A cosigner's credit history can be affected by the loan they are cosigned on.
True
False
Property that a borrower promises to give up if he/she can't repay a loan is called ______.
Collateral
Capacity
Foreclosure
Capital
What is the typical relationship between the riskiness of a loan and that loan's interest rate?
The lower the risk for the lender, the higher your interest rate will be
The higher the risk for the lender, the higher your interest rate will be
The higher the risk for the lender, the less likely it will be that you will pay interest
There is no relationship between the two
The original amount borrowed.
Principal
Balance
Debt
Income
The process in which interest is calculated on both the principal and the interest.
Compound interest (compounding)
Simple interest
Minimum
Complex
How do you avoid paying interest on your credit card (or any other loan for that matter)?
Always make the minimum payment over time
Pay interest 1st, then pay what you can on leftover balance
Always make the full payment on time
Pay the principal 1st, then pay what you can on interest
Which is TRUE when you make only the minimum payment each month?
You are charged interest on the remaining balance
Your credit line is restored to its maximum amount
Credit card companies have permission to sell your information
It is the fastest way to pay off your debt
A shorter auto loan term means ____ monthly payments & ____ total interest you'll pay.
higher, less
lower, more
higher, more
lower, less
Debt repayment strategy in which you pay all your minimum payments and then work on paying off the debt with the highest interest rate is.....
Debt Firestorm
Debt Snowball
Debt Avalanche
Debt Windmill
This image is from a ______found by law on a credit card statement.
Transparency Table
Credit Chart
Schumer Box
Schlieffen Plan
How long is the introductory APR period for cash advances?
3 months
6 months
9 months
12 months
What will be the interest rate on purchases once the introductory period is over?
0%--7.99%
7.99%--10.99%
17.99%-20%
7.99%--17.99%
Based on this chart, what would be the monthly payment for $50,000 car?
These are the average used auto interest rates per state. What is the used car interest rate in North Carolina?
12.1%
10.79%
11.26%
10.73%
