#1
What is a credit score?
A numerical representation of a person's creditworthiness
ExplanationIt quantifies an individual's creditworthiness based on financial history and behavior.
#2
Which of the following factors does NOT typically affect your credit score?
Level of education
ExplanationEducational background generally does not impact credit scores.
#3
What is considered a good credit score range according to FICO?
751-850
ExplanationA FICO score between 751-850 is generally considered good.
#4
What is the purpose of a credit score?
To measure a person's creditworthiness
ExplanationA credit score assesses an individual's creditworthiness.
#5
What is the primary purpose of a credit score?
To assess your creditworthiness
ExplanationThe primary purpose is evaluating creditworthiness.
#6
What is the term used to describe the maximum amount of money you can borrow on a credit card?
Credit limit
ExplanationCredit limit is the maximum amount borrowable on a credit card.
#7
What is the highest possible credit score according to FICO?
850
ExplanationThe maximum FICO credit score achievable is 850.
#8
Which credit bureau is NOT one of the major credit reporting agencies in the United States?
Equitrans
ExplanationEquitrans is not among the major credit reporting agencies in the US.
#9
What factors are NOT considered in calculating your credit score?
Income level
ExplanationIncome level is not a direct factor in calculating credit scores.
#10
Which of the following actions can negatively impact your credit score?
Closing old credit accounts
ExplanationClosing old credit accounts can lower your credit score.
#11
What does a 'hard inquiry' on your credit report usually indicate?
You've applied for new credit
ExplanationA hard inquiry results from applying for new credit.
#12
What is the average length of time that negative information stays on your credit report?
7 years
ExplanationNegative information typically remains on your credit report for 7 years.
#13
Which of the following actions does NOT affect your credit score?
Checking your own credit report
ExplanationChecking your own credit report does not impact your credit score.
#14
How often can you request a free credit report from each of the three major credit bureaus?
Once every year
ExplanationYou are entitled to one free credit report from each bureau annually.
#15
Which of the following can help improve your credit score over time?
Keeping credit card balances low
ExplanationMaintaining low credit card balances can positively impact your credit score.
#16
What is the purpose of a credit utilization ratio?
To calculate the amount of available credit you're using
ExplanationIt measures the percentage of available credit being utilized.
#17
Which of the following factors has the most significant impact on your credit score?
Payment history
ExplanationPayment history has the greatest impact on credit scores.
#18
What is the significance of having a 'thin file' in the context of credit scores?
It means you have limited credit history
ExplanationA 'thin file' indicates limited credit history.