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Credit Scores

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following factors are taken into account when calculating a credit score? You can select multiple options.

a)

New Credit

b)

Types of Accounts

c)

Length of History

d)

Payment History

2.

Which of the following intervals exemplifies excellent credit scores?

a)

300-549

b)

550-649

c)

700-749

d)

750-850

3.

Which of the following are good credit habits? You can select multiple options.

a)

Missing payments

b)

Avoid exceeding your credit limits

c)

Not spending more than you can afford

d)

Making payments above the minimum

4.

Paying less than the minimum payment on your credit card bill doesn’t count as a missed payment.

a)

True

b)

False

5.
Your credit score is not configured off of which of the following:
a)
Payment history
b)
Amount owed
c)
GPA
d)
Length of credit history
6.
Bank of America issues you a credit card with a maximum balance of $1,000.  This is an example of:
a)
Finance Charge
b)
Co-Signer
c)
Minimum Payment
d)
Credit Limit
7.

What type of credit score is this 570?

a)

Average

b)

Great

c)

Poor

d)

Excellent

8.

Connor is trying to improve his credit score, so he discussed this with his friend Becky. Which factors did she tell Connor to focus on?

a)

Payment history, credit utilization, length of credit history

b)

His income, education level, age

c)

Number of credit cards he has, types of credit used, recent inquiries

d)

His social media activity, shopping habits, favorite color

9.

Best Buy Credit Card is what type of credit?

a)

Open

b)

Installments

c)

Revolving

10.

Netflix is what type of credit?

a)

Open Credit

b)

Installments

c)

Revolving

11.

Mortgage is what type of credit?

a)

Open Credit

b)

Installments

c)

Revolving

12.

What is the main difference between credit cards and debit cards?

a)

Credit cards allow borrowing money, while debit cards use existing funds.

b)


Credit cards are linked to a bank account, while debit cards are not.

c)


Credit cards require a PIN for transactions, while debit cards do not.

d)

Credit cards have no spending limit, while debit cards do.

13.

What type of credit is typically used for large, one-time purchases like a car or home?

a)

Service Credit

b)

Installments

c)

Revolving

14.

Why do lenders use credit scores?

a)

To decide how much money someone has saved

b)

To determine loan approval and interest rates

c)

To track spending habits

d)

To calculate taxes

15.

Why is building good credit important for your future?

a)

It only matters for rich people

b)


It replaces the need for savings

c)

It affects interest rates, approvals, and financial opportunities

d)

It only matters when buying a house