Credit Quiz

A credit score is a quick and easy way to see your “credit character,” but there’s more to it than just a number. Let’s review what you’ve learned here.


1.) Lenders, landlords and insurance companies use credit scores to…

a. Predict the risk of lending to a potential borrower

b. Determine how much interest they’ll charge a potential borrower

c. Determine what rate a new customer will pay on their premiums

d. Determine how much a security deposit will be required before a renter moves into an apartment or house

e. All of the above

 

2.) True or False: A payday loan can help improve your credit score.

a. True

b. False

 

3.) True or False: An installment loan can help improve your credit score.

a. True

b. False

 

4.) Which of the following is a legitimate credit counselor?

a. Payday lenders

b. Title lenders

c. The National Foundation for Credit Counseling

d. Online credit repair companies that charge fees before any services are provided.

 

5.) Credit scores can be improved by:

a. Paying someone to “erase” your bad credit

b. Practicing better credit management over time

c. Taking out payday and title loans

d. Lending money to your friends and family

 

Answers: 1, e. 2, b. 3, a. 4, c. 5, b.

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