Credit

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Quick Quiz

Before exploring more about credit, test your existing knowledge with this short quiz. Discover how much you already know about credit cards and credit history and learn how you can improve. Then, take advantage of informative resources tailored to your results.

1

What’s the main function of credit bureaus, sometimes also known as credit reference agencies?

A
Provide credit to people
B
Refer people to where they can obtain credit
C
Collect information on consumer credit usage
D
Collect debts

Correct!

Credit bureaus collect information on consumer credit usage and make it available to lenders.

Not quite.

Credit bureaus collect information on consumer credit usage and make it available to lenders.

2

Credit scores or ratings may be used by lenders to determine whether you qualify for:

A
A credit card
B
A loan
C
A mortgage
D
All of the above

Correct!

Credit scores most likely will be reviewed by anyone planning to give you a loan or credit

Not quite.

Credit scores most likely will be reviewed by anyone planning to give you a loan or credit

3

What three main factors are commonly used to calculate your credit score or rating?

A
Your income, debt and monthly expenses
B
Your payment history, money owed, and credit history
C
Your earning potential, income taxes and monthly expenses
D
Your payment history, annual income and total debt

Correct!

Your credit score is commonly calculated based on your payment history, money owed and credit history.

Not quite.

Your payment history, money owed and credit history are commonly used to calculate your credit score or rating.

4

What does a credit score or rating help a lender determine?

A
How much money you owe
B
Your monthly income
C
Your savings rate
D
Your reliability to pay back money you owe

Correct!

A credit score helps a lender determine your reliability to pay back money you owe.

Not quite.

A credit score helps a lender determine your reliability to pay back money you owe.

Your Score

Nice job!

You’re credit savvy — check out these tips to stay successful.

Nice job!

You’re on the path to becoming credit savvy — check out these resources to become even more knowledgeable about credit.

Too Bad!

You’re new to personal finance with lots of credit potential — check out these resources to improve your credit knowledge.

How Much Do You Know About Credit?

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