Credit and Credit Score MCQs

1. What is credit?
Borrowed money to be repaid later
A measure of a person's debt
A measure of a person's income
2. What is a credit score?
A numerical representation of a person's creditworthiness
The amount of debt a person has
The interest rate on a credit card
3. Which organization calculates the FICO credit score?
Internal Revenue Service
Federal Trade Commission
Fair Isaac Corporation
4. What is the highest possible FICO credit score?
500
850
750
5. What is a good credit utilization ratio?
10%
50%
30%
6. What factors affect your credit score?
Payment history and credit utilization
Income and employment history
Social media activity
7. Which of the following is NOT a credit bureau?
Federal Reserve
TransUnion
Experian
8. How long does negative information generally stay on your credit report?
1 year
7 years
3 years
9. Which of the following is considered a good credit score?
450
600
750
10. What does a secured credit card require?
A co-signer
Collateral or a deposit
A high credit score
11. What is the purpose of a grace period on a credit card?
To earn rewards points
To avoid interest charges on purchases
To extend the due date for payments
12. What is a hard inquiry on a credit report?
A request for a credit limit increase
A request for a credit score review
A request for credit by a lender
13. Which of the following actions can negatively impact your credit score?
Keeping credit card balances low
Opening a new credit account
Paying bills on time
14. What is the purpose of a credit freeze?
To prevent unauthorized access to your credit report
To increase your credit limit temporarily
To reduce interest rates on existing loans
15. How often are you entitled to a free copy of your credit report from each credit bureau?
Twice a year
Every six months
Once a year