#1
What is a credit score?
A numerical representation of an individual's creditworthiness
The amount of money one owes to creditors
The total income of an individual
The number of credit cards a person owns
#2
Which of the following factors typically influences a credit score?
Age
Gender
Marital status
Payment history
#3
What is the primary purpose of a credit score?
To determine a person's income level
To assess a person's ability to save money
To evaluate a person's creditworthiness
To measure a person's spending habits
#4
Which of the following is considered a 'good' credit score?
#5
What range does a credit score typically fall into?
0-100
200-500
300-850
500-1000
#6
Which credit reporting agency is NOT one of the major three in the United States?
Equifax
Experian
TransUnion
Barclays
#7
How often are individuals entitled to receive a free copy of their credit report from each of the major credit reporting agencies?
Once every 6 months
Once a year
Once every 3 years
Twice a year
#8
What is the term for the process of checking one's own credit report without impacting the credit score?
Credit assessment
Credit monitoring
Credit score simulation
Credit inquiry
#9
Which of the following is NOT considered when calculating a credit score?
Length of credit history
Income level
Credit mix
New credit inquiries
#10
What is the term for the maximum amount of credit that a financial institution extends to a borrower?
Credit limit
Credit utilization
Credit report
Credit inquiry
#11
What is a derogatory mark on a credit report?
A positive remark from a creditor
An inquiry from a potential lender
A negative item indicating financial mismanagement
A remark indicating credit limit increase
#12
Which of the following factors has the greatest impact on a person's credit score?
Length of credit history
Types of credit used
New credit inquiries
Payment history
#13
What is the name of the federal law that regulates the collection and use of consumer credit information?
Fair Credit Reporting Act (FCRA)
Consumer Credit Protection Act (CCPA)
Credit Card Accountability Responsibility and Disclosure Act (CARD Act)
Fair and Accurate Credit Transactions Act (FACTA)
#14
What action can be taken to improve a poor credit score?
Closing old credit accounts
Applying for multiple new credit cards
Avoiding credit inquiries
Making timely payments and reducing outstanding debt
#15
Which of the following is NOT a common credit scoring model?
FICO Score
VantageScore
Equifax Score
TransUnion Score
#16
What does a higher credit utilization ratio indicate?
Lower credit risk
Higher credit risk
No impact on creditworthiness
Higher income level