Everfi Module 4 Credit Scores Quiz Answers

everfi module 4 answers

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Everfi Module 4 Quiz

 

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

 

Very Poor Credit Score
BELOW 500 , seek
Poor credit score
500-579 if your introits rate is high you may not qualify for loans at all
Fair Credit score
580-620
Okay credit score
620-679
Good Credit score
680-700 would qualify for MOST loans
Excellent Credit Score
700+ qualify for BEST loan terms and interest rates
How can you boost ur Credit Score and avoid a low one in the 1at place?
By PAYING your Bills ON TIME and managing what you barrow responsibly
What financial behaviors will typically lead to a low credit score?
Maxed out Credit Cards
Payment History
A history of the payments you have made on all credit you have obtained, which affects your
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%)
Amounts Owed

PPl who use less of their available credit, considered lower risk

(30% )

Length of Credit History
(15%)
New Credit

rated based on the number of recently opened accounts and the number of recent credit inquiries

(10%)

Types of credit used

number of various types of accounts (credit cards, loans, mortgages, etc.)

(10%)

Which of the following factors will have the greatest impact on your credit score? I. Length of Credit History II. Payment History III. Amounts Owed IV. Types of Credit Used
II (Payment History) III ( Amounts Owed

Credit Report Info:

Personal info

Name , address, and Social Security number on the TOP of the report.

– Make it accurate and up to date

Public Records
Lists info that’s available, includes things like Court Judgements and bankruptcy filings
Potentially Negative Items
Unpaid accounts and late payments and may stay on ur record UP to 7 Years.
Payment History

includes On Time and Late Payment of ur debts

– {Reminder}: Payment history has the GREATEST impact on ur Credit Score

Accounts in Good Standing
Have been reported to the credit bureau(s) as paid on Time and in FULL.
Soft Inquiry
Occurs when someone runs a background check on your credit like when ur starting @ a new job and DOESN’T affect ur Credit Score.
Hard Inquiry

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.

Did you know?
Every year ur entitled to one credit report from each of the credit BUREAUS for a total of 3 Free reports a year.
Which is LEAST important to maintaining a healthy credit score?
Knowing your EXACT Credit Score
Excellent Credit Score
Preferred Interest rate of 13% {720}
Fair Credit Rate
Land higher Interest Rate of 23% {620}
Which of the following actions has NO impact on your credit score?
You inquire about a credit card charge.
Which of the following MOST influences your credit score?
Payment History
Which of the following statements about credit scores is TRUE?

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

Which of the following actions would improve your credit score?
Paying off your Credit card bill
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?
Pay off his Credit Card Balance each Month
Having a good credit score is important because:
It can impact your ability to be approved for bank loans
In which of the following situations is having a good credit score important?

All of the above.

A.} Applying for a loan @ a bank

B.} Buying a car

C.} Renting an Apartment

D.} All of the above

Which behaviors might lead someone to have a low credit score?
Missing a car payment
Which of the following actions can NEGATIVELY impact your credit score?
You forgot to pay the cable bill.
If your credit reports show different scores, what should you do?
Get in touch with credit bureaus to see if they have different or inaccurate info on your credit history
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
B. It can impact your ability to be approved for bank loans
Which of the following is true of a person with a high credit score?
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.They are more likely to pay bills on time.
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.
A.You inquire about a credit card charge.
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.
B.You forgot to pay the cable bill.
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.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.
B.Pay off his credit card balance each month.
Which behaviors might lead someone to have a low credit score?
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.
B.Missing a car payment.
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
B.Payment History
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
C.One credit report from each credit bureau
Which of the following is NOT true of credit scores?
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.
B.The more money you make, the higher your credit score.
In which of the following situations is having a good credit score important?
A. Applying for a loan at a bank.
B. Renting an apartment.
C. Buying a car.
D. All of the above.
D. All of the above.
If your credit reports show different scores, what should you do?
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.
D. Get in touch with credit bureaus to see if they have different or
inaccurate information on your credit history.
What is the purpose of credit scores?
to tell how reliable you are on paying back credit
How many credit scores does a person have?
3
What is the range for credit scores?
300-850
What is the purpose of keeping a good credit score?
To be accepted for loans, lines of credit, and for buying houses, cars, etc.
What types of actions can hurt your credit score?
missing/late payments, maxing out credit card, opening too many lines of credit
What types of actions can help your credit score?
Always paying on time, only using small amounts of credit, having a good long credit history
What are the three big credit reporting agencies?
Equifax, Experian, TransUnion
How can having a low credit score impact you?
You can be denied lines of credit, denied loans, denied to buy a car, house, etc.
What has the most impact on your credit score?
Payment history
How many times per year can you get a free credit report from each bureau?
Once
What should you do if there are errors on your credit reports?
Immediately contact the credit bureau that has the credit score that is the most off
Quizzma Team
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