Quiz Questions & Answers
1. What does the term “good credit” mean?
A. Having a credit card that has low-interest rates.
B. It’s referring to having a good credit score that is a number usually between 300 and 850.
C. Good credit is something that you earn by using your debit card without overdrafting.
2. How is credit calculated?
A. Credit scores are calculated using 5 factors, with your payment history being the most important.
B. Every payment you make is given a number. The sum of those numbers becomes your credit score.
C. Credit is calculated based solely on negative events like overdrafting your checking account.
3. As mentioned, there are 5 main factors used to calculate your credit score. All of the following are used EXCEPT:
A. Payment History (making on-time payments)
B. Amounts Owed (Credit Utilization)
C. Credit History Length
E. Credit Mix (having different types of credit accounts like a student loan, car loan, and credit card
F. New credit (# of credit accounts you opened recently)
4. When you first start building credit, your credit score is…
A. Really high – you haven’t made any mistakes!
B. Pretty much in the middle – you start with an average score.
C. At the bottom – you have to prove yourself
D. You don’t actually have a credit score when you’re building it from scratch.
5. Which of the following features is NOT important when choosing a credit card?
A. Low, manageable credit line
B. Store card that offers discounts on merchandise
C. No Annual Fee
D. Low annual percentage rate (APR)
6. You have a credit card that charges 10% interest. Using your credit card, you buy books that cost $100 and gas that costs $20.
When you get your credit card statement, your total balance is $120, and your minimum payment is $15. To avoid a late payment fee, you must make the minimum payment on or before the due date. How much do you have to pay not to incur interest?
7. Which of the following will NOT hurt your credit score?
A. Requesting a credit report from all 3 bureaus at the same time.
B. Opening several credit cards at once.
C. Closing cards you never use.
D. Maxing out your credit card.
8. What’s the optimal credit utilization you should try to achieve?
A. 40% or less
B. 30% or less
C. 50% or more
D. 60% or less
9. All the following are good ways to monitor your credit card EXCEPT:
A. Use features like spend controls that allow you to set spending limits and alerts.
B. Set up auto-pay so you never miss a payment.
C. Wait until you receive your statement to review your purchases.
D. Logging into your mobile app to review purchases every day.
10. True or False: You can get a free copy of your credit report each year from each credit bureau. You can get weekly access to your credit report through April 2021.
11. The official website you can get your credit report from the 3 credit reporting agencies is: