Credit Management Review 2023
Quiz by Mitzi Glasgow
Feel free to use or edit a copy
includes Teacher and Student dashboards
Measure skillsfrom any curriculum
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- print as a bubble sheet
- Q1
What are the two most important factors in calculating your credit score?
Payment history & amounts owed
Length of credit history & new credit inquiries
Amounts owed & length of credit history
Payment history & type of account
30s - Q2
What general conclusion can you draw from this bar graph?
When young people borrow, they are likely to have lower interest rates because their credit scores are lower.
Credit scores tend to drop as you grow older because you are more likely to miss a payment.
It is more difficult for young people to borrow (i.e. get a loan) because they have less payment history for lenders to rely upon.
It is easier for young people to get loans at lower interest rates because they are likely to have never been late on a payment.
30s - Q3
Sam is carrying a balance on his credit card of $500. The credit limit on the card is $1,500. What is his utilization rate?
0%
3%
33%
75%
30s - Q4
Which of the following would NOT appear on a credit report?
Student loan activity
Salary of your current job
Credit card payment history
Payment history of your car loan
30s - Q5
Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?
annualcreditreport.com
Freecreditreports.com
Freecreditreport.com
getcreditreportshere.com
30s - Q6
Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?
Check his credit score
Make on-time payments
Cancel his credit cards
Get a car loan
30s - Q7
Which of the following will help you begin developing a credit history before you graduate from college?
Any time you borrow money from your parents, friends, or family, be sure to pay it back promptly.
Make small payments on your student loans while in college, even though they are not required to be paid back until you leave.
Be sure to keep a portion of your paycheck in a savings account instead of a checking account.
Always say "credit" when asked "credit or debit?" at a store.
30s - Q8
Each of the following are likely to check your credit score EXCEPT which one?
Credit card companies
Landlords
Federal student loan office
Auto loan lenders
30s - Q9
Frank and Jasmere are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?
Over the five year period, Jasmere and Frank will pay the same amount for the car loan.
Lenders are not allowed to charge people different interest rates based on their credit scores.
Jasmere's monthly payment on the loan will be about $100 more than Frank's payment.
Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment.
30s - Q10
How can your credit score impact your financial situation?
Consumers with low scores get lower interest rates on loans than those with high scores.
Consumers with high scores can borrow and those with low scores can't borrow.
It generally has no impact on your financial situation.
Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be.
30s - Q11
You have a credit card and want to know the best way to use it to boost your credit score. Which step will have the GREATEST impact?
Make the minimum payment required on your credit card every month by the due date.
Spend up to the full credit limit on your card and pay off the bill in full every month on time.
Put the credit card in a drawer and don't ever use it.
Not using more than 30% of the credit limit on your card and paying it off in full every month by the due date.
30s - Q12
I forget to pay my credit card bill one month. How long will that payment information show up on my credit report?
Seven years
Once I make the payment, it will disappear.
One year
Twelve years
30s - Q13
Who tracks all of your credit information?
Consumer Financial Protection Board (CFPB)
Companies named Equifax, Experian and TransUnion
Federal government
Lenders
30s - Q14
What is the relationship between a credit score and credit report?
The information in your credit report is used to calculate your credit score.
There is no relationship.
Credit scores are less important than your credit report.
Credit scores are updated annually while your credit report is updated weekly.
30s - Q15
You find an error on your credit report. Your credit card account indicates that you are 60 days late on your payment, but you have bank records indicating that you have always made on-time payments. What should you do FIRST?
Contact the bank to let them know that the credit card company is disputing payment.
Wait a few weeks to see if it gets resolved.
Contact the credit card company to have them fix it.
Contact the credit reporting agency.
30s
