Quiz: How Much do you Really Know about Credit Score?

Quiz: How Much do you Really Know about Credit Score?

Your credit score is undoubtedly one of the most important aspects of your personal finance portfolio. It has an impact on your ability to secure a home loan, auto loan, and affects your credit interest rate, among other things. It’s important to ensure you have a solid foundation of knowledge about this score so you can achieve your goals.

Take this credit score quiz to test your credit knowledge. To see if you answered correctly, just skip to the end to see the answers.  

  1. What is the maximum possible credit score?
    1. 600                  2
    2. 850
    3. 800
    4. 700                                                                                                                                                                                                             .
  2. Can you have more than one credit score?
    1. Yes                     1
    2. No                                                                                                                                                                                      .
  3. Will opening multiple department store credit cards in a short period of time increase or decrease your credit score?
    1. Increase            2
    2. Decrease                                                                                                                                                                             .
  4. Which of the following will appear on your credit report?
    1. Information on existing loans                4
    2. Applications for new credit cards
    3. Bankruptcies
    4. All of the above                                                                                                                                                                   .
  5. Will your spouse’s credit score affect yours?
    1. Yes               2
    2. No                                                                                                                                                                                            .
  6. Which of the following can a credit score impact?
    1. Mortgage for dream house              5
    2. Phone contract
    3. If you’re hired for a job
    4. Insurance plan rates
    5. All of the above                                                                                                                                                                     .
  7. What does a credit score primarily measure? 
    1. Amount of consumer debt                         3
    2. Financial capability  to pay back a loan  
    3. Risk of not paying back a loan
    4. All of the above                                                                                                                                                                     .
  8. Within what range is a credit score considered subprime?
    1. 500-600                      1
    2. 600-700
    3. 300-450
    4. 400-500                                                                                                                                                                              .
  9. Will several inquries from multiple lenders within a month will damage your credit score?
    1. Yes                               2
    2. No                                                                                                                                                                                               .
  10. You just got laid off from your job – how will the decrease in income affect your credit score?
    1. Increases credit score                   3
    2. Decreases credit score
    3. No impact on credit score                                                                                                                                             .
  11. What is the impact of paying off your credit card balance in full each month?
    1. Increases credit score                    1
    2. Decreases credit score
    3. No impact on credit score                                                                                                                                             .w. 

Answer Key + Explanations

  1. 2 – 850 

The maximum credit score is 850. Any score of above 660 is considered prime whereas any score above 780 is considered super prime. An excellent score is generally one above 720. Being in the prime and super prime ranges will help ensure that you can easily secure a loan you desire with an optimal rate. The lower your credit score dips, the tougher it will become to secure quality loans with low rates.

    2.  1 –  Yes

There are three main credit bureaus that receive your credit reports – Equifax, Experian and TransUnion. Each bureau has two methods of calculating your credit score – FICO method and VantageScore method. Lenders can then choose which model they’d like to use – most opt for FICO. You can have technically dozens of credit scores – but just worry about tracking one or two.

   3.  2 – Decrease

FICO: people with six plus credit inquiries on their reports in a short period are eight times more likely to declare bankruptcy than those with no inquiries during these period, thus this action brings down your credit score as it is a bad indicator.

  4.  4 – All of the Above

All of this information will appear on your credit report.

  5.  2 – No

Your spouse’s score won’t affect yours. However any loans you take out together or any joint accounts will render you both dually repsonsible for the debt on them.

 6. 5 – All of the Above

Lenders of all these faculties look at credit score as an indicator of how reliable youa re to pay back their loan.

 7. 3 – Risk of not paying back a loan

Lenders by definition want their loans back thus is why the concept of credit score was formed.

 8. 1 – (500-600)       

 9. 2 – No

If you’re applying for credit, inquiries from multiple lenders simultaneously can decrease your score. However, you have 30 days to shop for student loans, mortgages, and auto loans with no negative effect on your credit score.

10. 3 – No impact on credit score

As long as you are paying off your balances and not falling into late payments, your income will not affect your credit score directly whatsoever.

11. 1 – Helps credit score

This helps with the second most important factor of your score – credit utilization – which is the percentage of your available credit limit that you’re paying off at any given time.  Paying off your full  balance helps keep this low, which helps increase your credit score.

Credit Score Quiz Scoring Breakdown

11 correct answers 

 Perfect score – Your credit knowledge is top notch!

8-10 correct answers 

You have a strong knowledge of credit score – keep it up!

5-7 correct answers

You have a solid understanding of credit score – could be better, could be worse.

3-4 correct answers

You need to brush up on your credit score knowledge!

0-2 correct answers

Did you even know what a credit score was before taking this quiz?

Want to know more about credit score? Check out any of these entries in our FICO Credit Score 101 Series:

FICO Credit Score 101: Credit Inquiries

FICO Credit Score 101: Payment History

FICO Credit Score 101: Amounts Owed



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