Take Charge of Your Credit

1. By law, every American is entitled to which of the following:

A full, written explanation from the lender when denied credit.
His or her credit score.
A free copy of his or her credit report annually from each of the three main credit-reporting bureaus.
An extra 30-day grace period on all credit card accounts.

2. Which of the following is NOT included in a credit report?

Public records such as judgments, bankruptcies or tax liens
Current and previous mailing addresses
Current and previous employers
Information about checking and savings accounts

3. You can include a 100-word statement on your credit report.

True
False

4. How long does negative information remain on your credit report?

7-10 years
5-7 years
2-5 years
Forever

5. Which of the following is an example of an installment loan?

Credit card
Home Equity Line of Credit (HELOC)
Car Loan
Debit card that is connected to a checking account

6. What is a charge-off?

A notation that you've moved the balance of one credit card to a different card.
An account that is more than 180 days past due that a creditor can no longer count as an asset.
A signal to the lender that you've closed a credit account.
An attempt to borrow more money using a "maxed out" credit card.

7. You have one credit score.

True
False

8. Which of the following is a consequence of a low credit score?

A higher life insurance premium
A higher interest rate on a mortgage loan
Having to make a large down payment to qualify for a car loan
All of the above

9. You should keep your balance under ______ of your credit limit to protect your credit score.

10 percent
25 percent
50 percent
90 percent

10. Which of the following factors is NOT taken into account when factoring your credit score?

Whether you have a job.
Whether you pay your bills on time.
The amount of money you owe.
The length of your credit history.

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