17 Questions
What is the range of FICO credit scores?
$300$ to $850$
What factors are considered in determining a credit score?
Number of accounts, total debt levels, repayment history
What do lenders use credit scores for?
To evaluate creditworthiness and likelihood of loan repayment
Which of the following is NOT one of the three major credit bureaus in the U.S.?
Moody's
What do the three major credit bureaus primarily do?
Collect, analyze, and disburse consumer credit information
What percentage of a credit score is based on payment history?
35%
Which of the following can help you get a lower interest rate on a loan?
Maintaining a credit score of 700 or higher
What is the main purpose of credit scores for lenders?
To decide whether to approve or decline a loan application
Which of the following credit score ranges is considered excellent?
800-850
What percentage of a credit score is based on the amount of credit used compared to the available credit?
30%
What is the primary function of the three major credit bureaus in the U.S.?
To report, update, and store consumers' credit histories
What is the main advantage of having a longer credit history?
It provides more data to evaluate payment history, making it less risky.
Which of the following credit types can contribute to a better credit mix?
Both installment and revolving credit.
What does a lender typically view as a potential sign of credit desperation?
Too many recent applications for credit.
If you have multiple credit cards that you don't use, what is the recommended approach?
Store the unused cards safely, and regularly check for any fraudulent activity.
What is the primary difference between VantageScore and FICO Score?
All of the above.
What is the recommended approach for checking on unused credit cards to prevent fraud?
Check them every six months or annually for any unauthorized charges or activity.
Test your knowledge on credit scores, ranging from 300 to 850, and how they impact loan approvals and interest rates. Explore the factors that influence credit scores such as credit history, debt levels, repayment patterns, and more.
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