Which best explains what a credit score represents?

A numerical rating showing how likely you are to repay debts

Which actions can hurt your credit score?

Paying your phone bill late AND maxing out credit cards

If you want to maintain a high credit score to purchase a new car, what should you do to?

Pay off credit card balance each month

Having a good credit score is important because

It impacts ability to be approved for bank loans

Which of the following has NO impact on your credit score?

You inquire about a credit card charge

Which of the following actions can NEGATIVELY impact your credit score?

You forget to pay the cable bill

Which of the following is NOT true about credit scores?

The more money you make, the higher your credit score

If your credit reports show different scores, what should you do?

Contact the bureaus to ensure they have correct credit info

Which of the following is true of a person with a high credit score?

A. They are more likely to repay bills on time

What can someone do to help increase their credit score?

Use only small percentage of your credit limit

Which action is LEAST important to keeping a healthy credit score?

Knowing your exact credit score

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Everfi Financial Literacy Module 4-Credit Scores

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Credit Scores

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Questions 21

Answers

1
Which best explains what a credit score represents?
A numerical rating showing how likely you are to repay debts
A numerical rating showing how much money you have in bank
A number showing how likely you are to have mutiple cards
A number that expresses your yearly income
2
Which behaviors might lead someone to have a low credit score?
Having a debit card
Missing a car payment
Having a long credit history
Always paying the full balance each month
3
Which actions can hurt your credit score?
Paying your phone bill late AND maxing out credit cards
Nothing can hurt your score
Taking the bus to work AND using internet to pay your bills
4
Which of the following actions would improve your credit score?
Using a large portion of your credit limit
Opening a new savings account
Paying off credit card bill
Closing out old credit cards
5
Which of the following statements about credit scores is TRUE?
All of the above
Credit scores reflect how likely you are to repay your debts
Each person has three credit scores
Credit scores range from the low 300´s to the mid 800´s
6
In which of the following situations is having a good creidt score important?
Buying a car
Renting an apartment
Applying for a loan at a bank
All of the above
7
If you want to maintain a high credit score to purchase a new car, what should you do to?
Pay off credit card balance each month
Test drive several cars before deciding on one
All of the above
Open a savings account at a local bank
8
Having a good credit score is important because
It impacts how much you will have to pay for college
It impacts how much you will have to pay in taxes
It impacts ability to be approved for bank loans
It impacts ability to get a drivers license
9
Which of the following has NO impact on your credit score?
You send in your credit card payment a couple days late
You opened several new credit cards last week
You inquire about a credit card charge
You use a large amount of your credit limit
10
Which of the following actions can NEGATIVELY impact your credit score?
You use a small amount of your available credit
You disputed an item on your credit report
You forget to pay the cable bill
You pay all bills in cash
11
All of the following make up the big three credit reporting agencies EXCEPT:
Experian
TransUnion
Federal Reserve
Equifax
12
Having a low credit score can make it more difficult to:
Secure an apartment lease
Obtain a car loan
All of the above
Open a new credit card
13
What can you do to make sure you have a healthy credit report?
Dispute any errors you find on your report with your agency
Make sure everything on credit report is correct
All of the above
Review credit report each year
14
Which of the following is NOT true about credit scores?
Having a high score means you are more likely to repay debts
Credit scores can impact the car or home you buy
Only credit bureaus truly know how credit is calculated
The more money you make, the higher your credit score
15
If your credit reports show different scores, what should you do?
Contact the bureaus to ensure they have correct credit info
Research online to get in the system and fix it yourself
Nothing, the bureaus will recognize it and fix it for you
Visit a local bank and have them fix it for you
16
Which of the following MOST influences your credit score?
Amounts Owed
Types of Credit Used
Payment History
Length of Credit History
17
How many free credit reports are you legally entitled to each year?
1 report each year
3 reports from each bureau
1 report from each bureau
3 reports each year
18
Which is true of someone with a low credit score?
I. They make on time payments
III. They are more likely to miss a payment
II. They may not be able to rent the apartment they want
Both II and III
19
Which of the following is true of a person with a high credit score?
both B and C
B. They are less likely to pay off debts
A. They are more likely to repay bills on time
C. They have a high balance on multiple credit cards
20
What can someone do to help increase their credit score?
Open a savings account
Use only small percentage of your credit limit
Charge all monthly expenses to same credit card
Research student loan terms online
21
Which action is LEAST important to keeping a healthy credit score?
Fixing inaccurate information on your report
Making on-time payments
Checking credit report annually
Knowing your exact credit score

Everfi Financial Literacy Module 4-Credit Scores Flashcards | StudBud