#1
What is a credit score?
A measure of a person's ability to spend money
A measure of a person's creditworthiness
A measure of a person's annual income
A measure of a person's net worth
#2
Which of the following factors typically affects a credit score?
Gender
Religion
Payment history
Favorite color
#3
Which of the following is NOT a major credit reporting agency in the United States?
Equifax
TransUnion
Experian
Global Credit Bureau
#4
What term refers to the process of checking one's own credit report?
Credit check
Credit report review
Credit monitoring
Credit inquiry
#5
What does APR stand for in relation to credit?
Average Percentage Rate
Annual Percentage Rate
Average Payment Rate
Annual Payment Rate
#6
Which of the following factors has the greatest impact on a person's credit score?
Credit inquiries
Length of credit history
Types of credit used
Payment history
#7
What is considered a good credit score in the FICO scoring model?
#8
Which of the following actions can help improve a low credit score?
Closing old credit accounts
Applying for multiple credit cards in a short period
Making timely payments
Ignoring credit report errors
#9
Which of the following factors does NOT typically impact a credit score?
Length of credit history
Types of credit used
Marital status
New credit opened
#10
What is the term used to describe a credit score calculated by alternative data sources such as rent and utility payments?
Traditional credit score
FICO score
VantageScore
Alternative credit score
#11
What is the term used for the maximum amount of credit a person can borrow?
Credit limit
Credit ceiling
Credit cap
Credit maximum
#12
Which of the following statements is true regarding credit utilization ratio?
It is calculated by dividing total credit limit by total debt
It has no impact on credit scores
Lower utilization ratios are typically better for credit scores
It is only applicable to mortgage loans
#13
What is the significance of the credit utilization ratio in credit scoring?
It measures the amount of credit available to a person
It measures the amount of debt compared to credit limits
It measures the number of credit inquiries made by a person
It measures the length of credit history
#14
Which of the following actions can negatively impact a credit score?
Regularly checking credit reports
Closing old credit accounts
Making on-time bill payments
Applying for new credit accounts frequently
#15
What term is used to describe a record of a person's borrowing and repayment history?
Credit report
Credit score
Credit inquiry
Credit application
#16
What is a derogatory mark on a credit report?
A positive record of timely payments
A negative item that indicates potential risk to lenders
A neutral record of credit inquiries
A record of credit application approvals
#17
What is the impact of closing a credit card account on one's credit score?
It usually improves the credit score
It has no impact on the credit score
It can potentially lower the credit score
It only affects the length of credit history