How Much Do You Know About Credit and Debt?

1. When applying for a credit card, which of the following will NOT appear on the credit report your lender reviews?

A. The age of your accounts

B. The interest rate on your other debt obligations

C. Your monthly payment amounts

D. The last time you applied for credit (credit inquiries)

Correct!

Wrong!

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2. Which of the following is a definition of a revolving account?

A. A revolving account is any account that remains open indefinitely

B. A revolving account is one that you can add charges to, up to a limit, and pay either in full or across time

C. An account you can charge to and pay in full each month

D. An account that is transferrable to another party without the lender’s prior consent

Correct!

Wrong!

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3. If you want to make a quick increase to your credit score, you should…

A. Not apply for any new credit cards

B. Reduce your credit card balances as much as possible

C. Close any open accounts with zero balance

D. Both a and b

Correct!

Wrong!

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4. The official website to get your annual free credit report is:

A. myfreeannualcreditreport.com

B. yourcreditreport.com

C. governmentcreditreport.com

D. annualcreditreport.com

Correct!

Wrong!

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5. Poor credit can cause you to be denied for…

A. A job

B. A credit card

C. Car insurance

D. Both a and b

Correct!

Wrong!

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6. What is a FICO score?

A. The official government score you get with your free credit report

B. The numerical value of your outstanding credit used in nearly all credit decisions

C. The single comprehensive number that represents your creditworthiness

D. A three-digit score representing your creditworthiness at a point in time

Correct!

Wrong!

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7. When a debt collector contacts you, they cannot…

A. Call you before 8 a.m. or after 9 p.m. unless you agree to it

B. Call you at work if you ask them not to

C. Make threats or use profanity when contacting you

D. All of the above

Correct!

Wrong!

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8. If you forget to pay a parking ticket, can it negatively impact your credit?

A. Yes — the account could be sent to collections and reported to the credit bureaus

B. No way — parking enforcement agencies don’t report unpaid tickets to credit bureaus

C. Yes — it will be reported after a week and haunt you for seven years

D. Of course not! A parking ticket is not a financial instrument and can never impact your credit

Correct!

Wrong!

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