Credit Quiz
1. What are the two most important factors in calculating your credit score?
a. Payment history and type of account
b. Amounts owed and length of credit history
c. Payment history and amounts owed
d. Lengths of credit history and new credit inquiries
2. What general conclusions can your draw from this bar graph?
a. Credit scores tend to drop as your grow older because you are more likely to miss a
payment at some point in your life
b. Younger people tend to have lower credit scores, probably due to less credit activity, which
may make it less likely for them to get a loan
c. When younger people borrow, they are more likely to have a lower interest rate because
their credit scores are lower
d. It is easier for young people to get loans because they are less likely to have ever been late
with a payment so far in their life
3. Which of the following would not appear on a credit report?
a. Salary of your current job
b. Payment history of your car loan
c. Credit card payment history
d. Student loan activity
4. Your friend confides in you that he has a low credit score. What is the single best way for him to
begin improving his credit score?
a. Cancel his credit cards to show he has less debt
b. Make on-time payments to show a reliable payment history
c. Get a new car loan to show he has a variety of credit
d. Check his credit score regularly
5. Which group is less likely to be interested in looking at your credit score?
a. Employers
b. Credit card companies
c. Auto insurer
d. Landlord
e. Federal student loan office
6. How can your credit score impact your financial situation?
a. If your credit scores is high, you can borrow money, but it if is low, you cannot
b. Consumers with low scores get lower interest rates on loans than those with high scores
c. Your credit score determines if you will get a loan and what the interest rate for it will be
d. Your credit scores are there in case loan officers want to look at it, but they rarely do
7. You have a credit card an want to know the best way to use it to boost your credit score. Which
step will have the greatest impact?
a. Not using more than 30% of the credit limit on your card and paying it off in full every
month
b. Spend up to the full credit limit on your card and pay it off on time every month
c. Make the minimum payment requirement on your card every month by the due date
d. Stop using the credit card altogether
8. Which of the following would have a negative impact on your credit score?
a. Paying your bills on time
b. Paying off the balances on your credit cards
c. Decreasing your utilization of credit
d. Applying for multiple credit cards in a short period of time
9. You’re paying your credit card bill and your student loan payment each month, but you are falling
behind on your car loan payment. Which of the following steps should you NOT take?
a. Call the auto lender and see if you can negotiate a lower monthly payment
b. Pick up a second job to help accumulate extra money until you pay something off
c. Call the credit card company and ask if you can have an credit line increase
d. Consider re-budgeting so that you are no longer using your credit card as much
10. Mark “yes” for each of the following statements that would help you begin to develop a credit
history sooner than later, and “no” for each statement that would not help your credit.
Yes No
Statement
Always use your debit card rather than your credit card when paying for things.
Make small payments on your student loans while in college, even though they are not required
to be paid back until you leave.
Get a credit card (you may need a parent to co-sign) make small purchases and pay off the
balance in full each month.
If you rent an apartment, ask your landlord to report your payments to the credit bureaus, and
then pay on time each month.
Pay back the money to owe to any friends, parents, or family, as soon as possible.