Just how much do you know about credit scores? Do you know where to get a free copy of your credit report? What about the difference between a credit score and a credit rating? And what is FICO anyway? Test your credit score knowledge with this short quiz.
1. What is a credit score?
A. An imaginary number banks use
B. How likely you are to shop using a credit card
C. A number based on an analysis of a person’s credit files, which represents his or her creditworthiness
D. A sports event
2. Only banks use credit scores.
3. Credit scores are commonly referred to as FICO scores.
4. What does FICO stand for?
A. Financial Institution Corporation Organization
B. Fair Isaacs Corporation
C. Financial Investigation Company
5. FICO scores range from 300 to 850 points.
6. What do lenders use credit scores for?
A. To evaluate the potential risk posed by lending money to a person
B. To determine who qualifies for a loan and at what interest rate
C. To set credit limits
D. All of the above
7. Which company is NOT one of the three primary credit reporting bureaus?
8. Which of these factors are used to determine a credit score?
A. Past payment history
B. Amounts owed
C. Length of credit history
D. New credit accounts
E. Types of credit
F. All of the above
9. Your credit score will be higher if you’re regularly late paying bills and have maxed out your credit limits.
10. Negative marks on your credit report include which of the following?
C. Vehicle repossessions
D. Loan charge-offs
E. All of the above
11. A credit score of 740 or higher is considered excellent; a score below 670 may result in difficulty obtaining credit or higher interest rates on a loan.
12. You should review your credit report at least annually to check for errors and help prevent identity theft.
13. Where can you get a free copy of your credit report?
B. Your parents
C. Your employer
D. The IRS
14. Your credit score takes into account the length of time your accounts have been open, the types of existing credit and the number of recent credit or loan applications.
15. When checking your credit report, what potential signs of fraud should you be on the lookout for?
A. Strange names
B. Changes of address
C. Accounts you don’t recognize
D. Past-due notices on accounts you no longer use
E. All of the above
16. Which of the following are true about credit ratings?
A. Credit ratings are the same as credit scores
B. Credit ratings are used by lenders to determine a person’s future ability to pay back debt based on past, present and predictable future data
C. Credit ratings are expressed using letters with AAA the highest credit rating and D the lowest rating
D. Both B & C
17. It’s a good idea to stagger getting your credit report from each of the three credit reporting agencies, ordering one every three or four months.
18. What is the most important component of your credit score, comprising 35%?
A. Your payment history
B. Your employment history
C. How many times you’ve been married
D. How many credit cards you have
19. By understanding and periodically reviewing your credit report, you can see your payment history, understand how your credit is rated, and prevent errors from going undetected.
20. The longer an account has been open and in good standing, the better it will impact your credit score.
References: FICO, Wikipedia, Experian