Tips and Tools For Financial Success - Newton Free Library

Credit Quiz Answers
1. Correct Answer: d. All of the above
Lenders use all the information above to determine your creditworthiness.
2. Correct Answer: a. American Express
American Express issues credit cards and may use the services of a credit reporting agency but they
are not a major credit reporting agency.
3. Correct Answer: c. 7 years
After a period of 7 years a paid tax lien will remain on your credit report. An unpaid tax lien will
remain for a longer period of time.
4. Correct Answer: d. All of the above
Personal credit reports only contain certain pieces financial information. Your business account
information, bank account balance, and income are not identified in a credit report.
5. Correct Answer: b. Marital status
Lenders cannot turn down a loan based upon whether or not you are married.
6. Correct Answer: c. Past payment history
35% of your FICO score is based on your credit history.30% of your FICO score is based on amounts
that are owed. The other 3 factors are length of credit history, new credit, and types of credit used.
7. Correct Answer: a. Once a year
Although you may request copies of your credit report more than once a year a fee may be charged.
8. Correct Answer: c. Chapter 7 Bankruptcy
Chapter 7 bankruptcy will appear on your Credit report for 10 years.
9. Correct Answer: d. All of the above
Your credit report score impacts many parts of your life including rentals, jobs and insurance.
10. Correct Answer: d. All of the above
The special circumstances above are all reasons that may qualify for a free credit report. Ask if there
is a fee for your situation.
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