20 Questions
What is the main factor that makes up 35% of the credit score?
Credit payment history
What is the purpose of the Equal Credit Opportunity Act (ECOA)?
To ensure fair access to credit and prohibit discriminatory practices
What is the purpose of credit insurance?
To ensure that all credit payments will continue to be made in unforeseen circumstances
What is the range of Vantage Score, created as an alternative to the FICO scoring system?
501 to 990
What should an individual do if they find inaccurate information in their credit report?
Send a letter to the credit bureau that issued the credit report
What type of credit is provided for a short period, such as retail store credit?
Non-installment credit
Which type of credit is provided for specific purchases, with interest charged on the amount borrowed?
Installment credit
What is the primary advantage of using credit for making large purchases?
Ability to make large purchases
What is one of the disadvantages of using credit according to the text?
Excessive spending
Which type of credit allows individuals to make purchases instantly without carrying cash or writing checks?
Revolving open-end credit
What type of credit is provided up to a specified maximum amount based on income and credit history?
Revolving open-end credit
What is one of the primary advantages of using credit?
Building a good credit history
What does non-installment credit refer to?
Credit provided for a short period, such as retail store credit
What is the main disadvantage of using credit according to the text?
Excessive spending
Which type of credit is provided for specific purchases, with interest charged on the amount borrowed?
Installment credit
What is the primary purpose of credit insurance?
To provide financial security in case of unforeseen circumstances
What does the Equal Credit Opportunity Act (ECOA) primarily aim to ensure?
Access to fair credit and prohibition of discriminatory practices
What factor makes up the largest portion (35%) of the credit score?
Credit history
What is the main function of credit bureaus mentioned in the text?
To provide detailed records of credit transactions and calculate credit scores
What does Vantage Score measure?
The likelihood of repaying debt in a timely manner
Test your knowledge about assessing and securing credit with this quiz. Learn about different types of credit such as non-installment credit, installment credit, and revolving open-end credit.
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