Everfi Module 4 Answers
1. Which of the following statements about credit scores is TRUE?
a. Credit scores reflect how likely individuals are to repay their debts.
b. Credit scores range from the low 300’s to the mid 800’s.
c. Each person has three credit scores.
d. All of the above.
2. Which of the following statements are TRUE about credit scores?
A. Credit scores reflect how likely individuals are to repay their debts.
B. Only the credit bureaus know exactly how credit scores are calculated.
C. Both A & B
D. Neither A nor B
3. Having a good credit score is important because:
a. It can impact your ability to get a driver’s license
b. It can impact your ability to be approved for bank loans
c. It can impact how much you will have to pay the government in taxes
d. It can impact how much you will have to pay for college
4. Which action can hurt your credit score?
I. Paying your phone bill late.
II. Taking the bus to work.
III. Maxing out several credit cards.
IV. Using the internet to pay your bills
- I
- I and II
- I and III
- III and IV
5. All of the following make up the big three credit reporting agencies EXCEPT:
- Equifax
- TransUnion
- Experian
- Federal Reserve
6. Jose wants to be sure he maintains a high credit score as he is planning to buy a new car soon. What should he do to ensure his score stays high, allowing him to buy his dream car?
a. Open a savings account at the local bank.
b. Pay off his credit card balance each month.
c. Test drive several cars before deciding which to buy.
d. All are things he should do to increase or maintain his credit score.
7. Which of the following actions can NEGATIVELY impact your credit score?
a. You disputed an item on your credit report.
b. You forgot to pay the cable bill.
c. You pay all your bills in cash.
d. You use a small amount of your available credit.
8. Which of the following actions has NO impact on your credit score?
a. You inquire about a credit card charge.
b. You use a large percentage of your credit limit.
c. You opened several new credit cards last week.
d. You send in your credit card payment a couple days late.
9. What can you do it make sure you have a healthy credit report?
a. Review your credit report each year.
b. Make sure everything on your credit report is correct.
c. Dispute any errors you find on your report with your credit agency.
d. All of the above.
10. Which of the following MOST influences your credit score?
a. Types of Credit Used
b. Payment History
c. Length of Credit History
d. Amounts Owed
11. Which best explains what a credit score represents?
a. A number showing how likely you are to have more than one credit card.
b. A numerical rating that expresses how likely you are to repay your debts.
c. A numerical rating that shows how much money you have in your bank account.
d. A number expressing your yearly income.
12. Which of the following actions would improve your credit score?
a. Closing out old credit cards
b. Paying off your credit card bill
c. Using a large portion of your credit limit
d. Opening a new savings account
13. In which of the following situations is having a good credit score important?
a. Buying a car.
b. Applying for a loan at a bank.
c. Renting an apartment.
d. All of the above.
14. How many free credit reports are you legally entitled to each year?
a. One credit report each year
b. Three credit reports each year
c. One credit report from each credit bureau
d. Three credit reports from each credit bureau
15. Having a low credit score can make it more difficult to:
a. Obtain a car loan
b. Open a new credit card
c. Secure an apartment lease
d. All of the above
16. Which behaviors might lead someone to have a low credit score?
a. Missing a car payment.
b. Having a long credit history.
c. Always baying the full balance of a credit card each month.
d. Having a debit card.
Terms and Answers to Learn
credit score. Tracks such things as whether or not you pay your bills on time, whether or not you always pay at
least the minimum amount, etc. ( 35%)
PPl who use less of their available credit, considered lower risk
(30% )
rated based on the number of recently opened accounts and the number of recent credit inquiries
(10%)
number of various types of accounts (credit cards, loans, mortgages, etc.)
(10%)
Credit Report Info:
Personal info
Name , address, and Social Security number on the TOP of the report.
– Make it accurate and up to date
includes On Time and Late Payment of ur debts
– {Reminder}: Payment history has the GREATEST impact on ur Credit Score
Occurs when someone checks ur Credit History to make a lending decision.
– A hard Inquiry AFFECTS ur Credit Score and can remain on report for up to 2 YEARS.
All of the above.
a.}Credit scores reflect how likely individuals are to repay their debts.
b.Credit scores range from the low 300’s to the mid 800’s.
c.}Each person has three credit scores.
d.} All the above
All of the above.
A.} Applying for a loan @ a bank
B.} Buying a car
C.} Renting an Apartment
D.} All of the above
A. It can impact your ability to get a driver’s license
B. It can impact your ability to be approved for bank loans
C. It can impact how much you will have to pay the government in
taxes
D. It can impact how much you will have to pay for college
A.They are more likely to pay bills on time.
B.They are less likely to pay off debts.
C.They probably have a high balance on multiple credit cards
D.Both B and C are correct.
A.You inquire about a credit card charge.
B.You use a large percentage of your credit limit.
C.You opened several new credit cards last week.
D.You send in your credit card payment a couple days late.
A.You disputed an item on your credit report.
B.You forgot to pay the cable bill.
C.You pay all your bills in cash.
D.You use a small amount of your available credit.
A.All are things he should do to increase or maintain his credit score.
B.Pay off his credit card balance each month.
C.Open a savings account at the local bank.
D.Test drive several cars before deciding which to buy.
A.Always paying the full balance of a credit card each month.
B.Missing a car payment.
C.Having a long credit history.
D.Having a debit card.
A.Types of Credit Used
B.Payment History
C.Length of Credit History
D.Amounts Owed
A.One credit report each year
B.Three credit reports each year
C.One credit report from each credit bureau
D.Three credit reports from each credit bureau
A.Having a high score means you are more likely to repay debts.
B.The more money you make, the higher your credit score.
C.Only the credit bureaus truly know credit scores are calculated.
D.Your credit score can impact the car or home you can buy.
A. Applying for a loan at a bank.
B. Renting an apartment.
C. Buying a car.
D. All of the above.
A. Visit your local bank and have them fix it for you.
B. Research online to see how you can get into the system and fix it
yourself.
C. Nothing, the credit bureaus will recognize the mistake and fix it for
you.
D. Get in touch with credit bureaus to see if they have different or
inaccurate information on your credit history.
inaccurate information on your credit history.
