Creditworthiness Quiz

Which category is the most important in determining a person's credit score?

New credit

Length of credit history

Payment history (correct)

How much you owe

What is the range of credit scores?

200-700

300-850 (correct)

500-950

400-900

Which category looks at the amounts you owe on all of your accounts?

Payment history

New credit

How much you owe (correct)

Length of credit history

Which category rewards points for having a longer history of using credit responsibly?

Length of credit history Signup and view all the answers

Which organizations maintain records on everyone's credit activity and habits?

Credit bureaus Signup and view all the answers

Which company originally created the credit score formula?

Fair Isaac Corporation Signup and view all the answers

What is a credit score?

A number of points earned based on credit decisions Signup and view all the answers

What range do credit ratings typically fall into?

Poor to excellent Signup and view all the answers

What are some benefits of having a good credit rating?

Borrowing a larger amount of money Signup and view all the answers

In addition to lenders, who else may use a person's credit score?

All of the above Signup and view all the answers

True or false: Payment history is the least important category in determining a person's credit score.

False Signup and view all the answers

True or false: Creating new credit accounts can positively impact your credit score.

False Signup and view all the answers

True or false: The credit bureaus are responsible for issuing credit reports to lenders.

True Signup and view all the answers

Match the following categories with their impact on credit score:

Payment History = Most important, rewards on-time bill payments How Much You Owe = Second most important, rewards less owed amount Length of Credit History = Third most important, rewards longer responsible credit usage New Credit and Types of Credit = Least important, penalizes opening new credit accounts Signup and view all the answers

Match the following credit score ranges with their ratings:

300-579 = Very Poor 580-669 = Fair 670-739 = Good 740-799 = Very Good 800-850 = Exceptional Signup and view all the answers

Match the following organizations with their role in credit scoring:

Equifax = Credit Bureau Experian = Credit Bureau TransUnion = Credit Bureau Lenders = Use credit reports to determine credit worthiness Signup and view all the answers