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?

The age of your accounts

The interest rate on your other debt obligations

Your monthly payment amounts

The last time you applied for credit (credit inquiries)

Correct!

Wrong!

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2. Which of the following is a revolving account?

Secured MasterCard

MyVanilla Reloadable Prepaid Card

Green Dot Prepaid Visa Card

MasterCard Prepaid Debit Card

Correct!

Wrong!

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3. If you want to boost your credit score, you shouldn't…

Apply for five new credit cards

Reduce your credit card balances

Open a secured credit card

Open a credit-builder loan

Correct!

Wrong!

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4. What could happen to your credit score if you don’t return a library book on-time?

Nothing

It could drop by up to 100 points if sent to collections

It could drop by over 200 points if sent to collections

Any of these

Correct!

Wrong!

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5. An installment loan…

Has a variable interest rate for a set amount of time

Has a fluctuating payment for a set amount of time

Has a fixed payment for a set amount of time

Has a balance that increases over time

Correct!

Wrong!

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6. If Selena Gomez wants to check her credit report for the first time, which of the following is an option?

AnnualCreditReport.com

MyFreeCreditScore.com

Both a and b

None of these

Correct!

Wrong!

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

A job

A credit card

Car insurance

Any of these

Correct!

Wrong!

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8. What is a FAKO score?

A credit score used by 90 percent of creditors to make a lending decision

A credit score used by 80 percent of creditors to make a lending decision

Any credit score that is not a FICO score

A credit score used by 85 percent of creditors to make a lending decision

Correct!

Wrong!

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9. When you make the minimum payment on a credit card, how much is applied to the principle?

35%

25%

10%

1%

Correct!

Wrong!

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10. True or False: You can visit the credit bureau’s office to file a dispute.

True

False

Correct!

Wrong!

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

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

Call you at work if you ask them not to

Make threats or use profanity when contacting you

Do any of these

Correct!

Wrong!

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12. If Usain Bolt forgets to pay a parking ticket, can it negatively impact his credit?

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

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

Yes – it will be reported after a week and haunt him forever.

Of course not! He’s a celebrity, so he can argue his way out of it.

Correct!

Wrong!

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