Creditworthiness Quiz

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Questions and Answers

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?

<p>Length of credit history (D)</p> Signup and view all the answers

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

<p>Credit bureaus (C)</p> Signup and view all the answers

Which company originally created the credit score formula?

<p>Fair Isaac Corporation (D)</p> Signup and view all the answers

What is a credit score?

<p>A number of points earned based on credit decisions (A)</p> Signup and view all the answers

What range do credit ratings typically fall into?

<p>Poor to excellent (B)</p> Signup and view all the answers

What are some benefits of having a good credit rating?

<p>Borrowing a larger amount of money (B)</p> Signup and view all the answers

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

<p>All of the above (D)</p> Signup and view all the answers

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

<p>False (B)</p> Signup and view all the answers

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

<p>False (B)</p> Signup and view all the answers

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

<p>True (A)</p> Signup and view all the answers

Match the following categories with their impact on credit score:

<p>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</p> Signup and view all the answers

Match the following credit score ranges with their ratings:

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

Match the following organizations with their role in credit scoring:

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

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