Building Credit
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Questions and Answers

Which of the following is NOT a way to establish credit for the first time?

  • Becoming an authorized user
  • Taking out a loan with a cosigner
  • Getting a secured credit card
  • Taking out a federal student loan (correct)
  • How long does it take for someone with good credit habits to have a credit score in the mid to high 600s?

  • 1 year
  • 3 years (correct)
  • 7 years
  • 5 years
  • What is the benefit of being added as an authorized user on someone else's credit card?

  • You can access the primary cardholder's credit limit
  • The primary cardholder's payment history is added to your credit files (correct)
  • You become legally obligated to pay for purchases made on that account
  • You can use the credit card freely without any consequences
  • Which of the following is a way to build credit while in college?

    <p>Get a secured credit card</p> Signup and view all the answers

    What is the responsibility of a co-signer on a loan?

    <p>The co-signer is responsible for the full amount owed if the borrower doesn't pay</p> Signup and view all the answers

    What does the Fair Credit Reporting Act (FCRA) provide?

    <p>The right to be told if information in your credit report has been used against you</p> Signup and view all the answers

    What is the purpose of a credit builder loan?

    <p>To help the borrower build credit history</p> Signup and view all the answers

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