Understanding Credit Scores and Financial Responsibility Quiz

Credit score indicates one's creditworthiness.

You're entitled to one free credit report per year from each major credit bureau.

Co-signers assume shared responsibility for the debt.

APR stands for Annual Percentage Rate, indicating the annual cost of borrowing.

Credit Karma is known for providing free credit score monitoring services.

Annual income generally does not directly impact credit score.

FICO credit scores range from 300 to 850.

DTI helps assess the proportion of debt relative to income.

Closing a credit card account can decrease your credit score.

Credit utilization denotes the proportion of available credit utilized.

New credit accounts typically affect credit score positively after about 90 days.

Credit freeze prevents unauthorized access to your credit report.

Negative information stays on the credit report for approximately 7 years.

Closing old credit accounts can negatively impact your credit score.

Credit mix assesses your capability to handle various credit types.

A credit score between 800 and 850 is commonly considered excellent.

Hard inquiries often occur when applying for new credit.

Derogatory marks include negative items such as bankruptcy or foreclosure.

Payment history has the most significant impact on credit score.