Quiz/ Personal Finance

Credit and Credit Score MCQs

  1. What is credit?
  2. Borrowed money to be repaid later
    A measure of a person's debt
    A measure of a person's income
  3. What is a credit score?
  4. A numerical representation of a person's creditworthiness
    The amount of debt a person has
    The interest rate on a credit card
  5. Which organization calculates the FICO credit score?
  6. Internal Revenue Service
    Federal Trade Commission
    Fair Isaac Corporation
  7. What is the highest possible FICO credit score?
  8. 500
  9. What is a good credit utilization ratio?
  10. 10%
  11. What factors affect your credit score?
  12. Payment history and credit utilization
    Income and employment history
    Social media activity
  13. Which of the following is NOT a credit bureau?
  14. Federal Reserve
  15. How long does negative information generally stay on your credit report?
  16. 1 year
    7 years
    3 years
  17. Which of the following is considered a good credit score?
  18. 450
  19. What does a secured credit card require?
  20. A co-signer
    Collateral or a deposit
    A high credit score
  21. What is the purpose of a grace period on a credit card?
  22. To earn rewards points
    To avoid interest charges on purchases
    To extend the due date for payments
  23. What is a hard inquiry on a credit report?
  24. A request for a credit limit increase
    A request for a credit score review
    A request for credit by a lender
  25. Which of the following actions can negatively impact your credit score?
  26. Keeping credit card balances low
    Opening a new credit account
    Paying bills on time
  27. What is the purpose of a credit freeze?
  28. To prevent unauthorized access to your credit report
    To increase your credit limit temporarily
    To reduce interest rates on existing loans
  29. How often are you entitled to a free copy of your credit report from each credit bureau?
  30. Twice a year
    Every six months
    Once a year