Which student is most likely to have the highest credit score?

Kareem has 3 credit cards that they pay in full every month

Struggling to pay off excess debt can lead to all of these consequences, EXCEPT...

Being fired from your job if your employer finds out you have too much debt

What is the purpose of a credit report?

To help lenders determine if you are a qualified candidate for credit

All of these are true about late credit card payments, EXCEPT...

They are an extremely rare occurrence among American credit cardholders

If a potential lender checks your credit score and finds out it is above 750, which is the most likely outcome?

You will receive a loan with a low interest rate

Which of the following statements about wages and household American debt is true?

Wages have increased less than prices, and debt has increased

Meghan asks 4 friends for advice on how to raise her credit score. Which is the best piece of advice?

Pay your credit card bill on time each month

Why is it important to check your credit report regularly?

To identify potential errors or fraudulent activity

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Unit 10 Assessment Review

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Questions 10

Answers

1
Which student is most likely to have the highest credit score?
Hassan has 3 credit cards with low balances and forgets to pay
Kareem has 3 credit cards that they pay in full every month
Sarah has never had a credit card and has over $10,000 in savings
Bekkah has 2 credit cards and they’re usually near their credit limit
2
Struggling to pay off excess debt can lead to all of these consequences, EXCEPT...
Having purchases repossessed for failure to make payments
Having your wages reduced by collectors on unpaid debts
Developing health problems from the stress of carrying debt
Being fired from your job if your employer finds out you have too much debt
3
What is the purpose of a credit report?
To provide a free tool for you to track your finances and budget
To prove that you are authorized to work in the United States
To help lenders determine if you are a qualified candidate for credit
To compare the cost of different lines of credit
4
All of these are true about late credit card payments, EXCEPT...
They are the largest factor in your overall credit score
They can drop your credit score by as much as 100 points
They can stay on your credit report for up to 7 years
They are an extremely rare occurrence among American credit cardholders
5
What is the highest FICO credit score you can obtain?
100
850
650
1000
6
If a potential lender checks your credit score and finds out it is above 750, which is the most likely outcome?
You will receive a loan with a low principal
You will be denied the loan
You will receive a loan with a low interest rate
7
Which of these parties is least interested in checking your credit score?
A car dealership
An apartment leasing office
A college admissions office
8
Which of the following statements about wages and household American debt is true?
Wages have increased more than prices, and debt has decreased
Wages and prices have remained the same, and debt has remained the same
Wages have increased less than prices, and debt has increased
Wages have increased proportional to prices, and debt has remained the same
9
Meghan asks 4 friends for advice on how to raise her credit score. Which is the best piece of advice?
Pay off your debts as slowly as possible
Open up a savings account
Pay your credit card bill on time each month
Close as many credit card accounts as you can
10
Why is it important to check your credit report regularly?
It gives you something to do
To identify potential errors or fraudulent activity
To improve your credit score through frequent hard inquiries
To monitor the transactions on your credit card

Unit 10 Assessment Review Flashcards | StudBud