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