#1
Which of the following factors does NOT affect your credit score?
Income level
ExplanationIncome level does not directly affect your credit score.
#2
What is the importance of a good credit score?
To get approved for loans and credit cards
ExplanationA good credit score increases the likelihood of loan and credit card approvals.
#3
What is the typical range for a credit score?
300-850
ExplanationCredit scores range from 300 to 850.
#4
Which of the following is NOT a credit reporting agency?
Federal Reserve
ExplanationThe Federal Reserve is not a credit reporting agency.
#5
What is the name of the law that allows consumers to access their credit reports for free once a year?
Fair Credit Reporting Act (FCRA)
ExplanationThe Fair Credit Reporting Act (FCRA) enables free annual credit report access.
#6
Which of the following factors is NOT considered when calculating your credit score?
Employment history
ExplanationEmployment history is not typically considered when calculating your credit score.
#7
Which of the following actions can help improve your credit score?
Making timely bill payments
ExplanationTimely bill payments positively impact your credit score.
#8
What is the significance of credit utilization ratio in credit scoring?
It measures the amount of debt relative to credit limits
ExplanationCredit utilization ratio measures debt compared to credit limits.
#9
What is the term for a negative mark on your credit report?
Credit bruise
ExplanationA negative mark on your credit report is called a credit bruise.
#10
How long does a late payment typically remain on your credit report?
7 years
ExplanationLate payments typically remain on your credit report for 7 years.
#11
What is the term for the highest credit score possible?
Excellent score
ExplanationThe highest credit score possible is called an excellent score.
#12
Which of the following debts is typically NOT included in your credit report?
Utility bill debt
ExplanationUtility bill debt is typically not included in credit reports.
#13
How often can you check your credit report without affecting your score?
Unlimited times
ExplanationChecking your credit report does not impact your score, even if done frequently.
#14
Which of the following factors has the most significant impact on your credit score?
Payment history
ExplanationPayment history has the most significant impact on your credit score.
#15
What is the primary purpose of a credit score?
To predict the likelihood of default on credit obligations
ExplanationThe primary purpose of a credit score is to predict default likelihood.
#16
What type of inquiry can affect your credit score negatively?
Hard inquiry
ExplanationHard inquiries can negatively impact your credit score.
#17
What is the term for the practice of moving debt from one credit card to another to take advantage of a lower interest rate?
Balance transfer
ExplanationMoving debt from one card to another for lower interest is called a balance transfer.