Before what's and why a Credit Report ? 

Today you still need to supply a credit report and score whenever you applied for:

• Loans. (phone, laptop, car, motorcycle, computer, boat, home)

• Credit cards 

• Dream job 

• Insurance. (car, motorcycle, computer, boat, home).

• To rent an apartment.

• To cosigne a loan.

• To improve your credit score. (A credit score is often calculate by FICO).

• You are denied credit. (Credit cards or loans).

• You want a mobile phone.

• You suspect an identity theft.

• You are follow up by the collection agencies. Caution: You have the rights against agencies. 

• You pay to high interest on your credit cards or loans.

• You want to fix your low, poor, fair or bad credit.

• You want to keep your credit score in good shape.

• You want to make sure your credit information accurate.

• You won’t be surprised at outcome of your applications !

• You want what actions hurt and help your credit score ?

• You want your dream home !

 

NOW start up this quiz test !

Q 1—How important is it to check the accuracy of your credit reports at the three main credit bureaus?

a. Very important

b. Somewhat important 

c. Not very important

A 1—The answer is a: Very important. 

WHY: Lenders may have provided inaccurate information, or failed to add accurate information, about your payment history to your credit reports. Moreover, many consumers have similar names, even accurate information may have been added to the wrong file. Each of the three main credit bureaus Equifax, Experian and TransUnion is required by federal law to provide a free copy of your credit report once a year upon request. 

 

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An easy way to get each report : Claim fast NOW ! 

 

Q 2— Who collects the information on which credit scores are most frequently based?

a. FICO score and VantageScore. 

b. Three main credit bureaus: Experian, Equifax, and TransUnion

c. Individual lenders

d. Federal government 

e. All of the above

A 2—The answer is b:

Three main credit bureaus collect information on the credit use of more than 200 million Americans and make it available in credit reports. FICO and VantageScore Solutions have developed the most widely used scoring systems that use credit reports to calculate credit scores.

 

Q 3—Which of the following service providers may use credit scores to decide whether a person can buy a service and/or what price he or she will pay?

a. Mortgage lender

b. Credit card issuer

c. Home / auto insurer

d. Cell phone company 

e. Electric utility

f.  Landlord

g. All of the above

A 3—The answer is g. 

All your loans, student loans, personal loans, you rent, your services, your insurances that you request use your credit score to determine the interest rates, charges and fees.

 

Q 4—Which of the following is usually a Good FICO score ?

1. 800-850

2. 740-799

3. 670-739

4. 580-669

5. 300-579

 

A 4—Answer: c.

FICO Score get 90% of market used by the lenders.

1. 800-850 Excellent

2. 740-799 Very Good

3. 670-739 Good 

4. 580-669 Fair

5. 300-579 Very poor

 

Q 5—Which of the following FICO Score get the best rates with the lenders ?

1. 800-850 Excellent

2. 740-799 Very Good

3. 670-739 Good 

4. 580-669 Fair

5. 300-579 Very poor

A 5—The answer is A. 

A good credit score don’t give you the best interest rates. Only the excellent rate give you the best rates. LEARN MORE…xxx

 

Q 6—On a $20,000, 60-month auto loan, about how much more would a borrower with a bad credit score pay than a borrower with a good report?

a. Under $1,000

b. $1,000-$3,000

c. $3,000-$5,000

d. More than $5,000

 

A 6—The answer is d :

Did you know your credit score impacts what you will pay not only on mortgages, auto loans and credit cards; but also your insurance premiums? The fact is it could cost you over $200k in interest, expenses and fees over the course of your lifetime if you have less than excellent credit scores.

 

Q 7—“Payment History” makes up (X %) of your FICO Score ?

a. 15%

b. 25%

c. 30% 

d. 35%

e. 40%

 

A 7—The answer is C

Do you know one of the ways to protect your credit scores is to keep credit card balances under 30% off the credit limits? Your level of debt, also known as credit utilization, accounts for 30% of your credit scores. A low credit utilization on each account and overall demonstrates that you can responsibly use credit.

 

Q 8—Which of the following does a credit score mainly indicate?

a. Knowledge of consumer credit

b. Attitude toward consumer credit

c. Amount of consumer debt

d. Risk of not repaying the loan

e. Financial resources to pay back the  loan

 

A 8—The answer is d.

Believe me any bank or creditor will not do you a gifts….

 

Q 9—Which of these groupings contains three factors that are all used to calculate a credit score?

a. A person’s age, missed loan payments, and marital status 

b. Missed loan payments, high balances on credit cards, and ethnic origin.

c.  Marital status, high balances on credit cards, and personal bankruptcy

d.  A person’s age, high balances on credit cards, ethnic origin

e.  Loan payments, high balances on credit cards, and personal bankruptcy

 

A 9—The answer is e.

 

Q 10— Who collects the information on which credit scores are most frequently based?

a. FICO score and VantageScore. 

b. Three main credit bureaus: Experian, Equifax, and TransUnion

c. Individual lenders

d. Federal government 

e. All of the above

 

A 10—The answer is b:

Three main credit bureaus collect information on the credit use of more than 200 million Americans and make it available in credit reports. FICO and VantageScore Solutions have developed the most widely used scoring systems that use credit reports to calculate credit scores.

 

Q 11—When are lenders that use credit scores required to inform borrowers of the credit score used in the lending decision?

a. After a consumer applies for a mortgage

b. On all credit card, auto, and other consumer loans when a consumer doesn’t receive the best terms and/or lowest interest rate available

c. Whenever a consumer is turned down for a loan 

d. All of the above

e. None of the above

 

A 11—The answer is d.

 

Q 12—Which of the following actions helps a consumer raise a low score or maintain a high one?

a. Make all loan payments on time

b. Keep credit card balances under 25% of the credit limit

c. Avoid opening several credit card accounts at the same time 

d. All of these

e. None of these

 

A 12—The answer is d:

All of these. In general, following these three actions will help raise a low score, though it usually takes many months to turn a low score into a high one. On the other hand, high scores could drop considerably if these actions are not followed. For example, someone with a good score may lose up to 70-90 points when payments are missed on credit card or automobile loans, and more than 100 points when a mortgage payment is missed.

 

Q 13—When will multiple inquiries about getting a mortgage or auto loan lower one’s FICO or VantageScore credit score?

a. Each time one makes an inquiry

b. Only when one makes at least five inquiries

c. Never during a one- to two-week window

d. Never

 

A 13—The answer is c: 

Never during a one- to two-week window.

Multiple inquiries during this period are treated as a single inquiry by FICO and VantageScore credit scoring models and also usually by others scoring models. An inquiry after this window has closed may be considered a second inquiry, so could lower one’s credit score. But keep in mind that multiple inquiries rarely lower a consumer’s credit score as much as one missed loan payment.

 

Q 14—When you cannot resolve a complaint to a credit bureau or lender about your credit report or credit score, which of these federal agencies is best suited to help you resolve the problem?

a. Federal Reserve Board

b. Federal Trade Commission

c. Consumer Financial Protection Bureau 

d. Department of Justice

 

A 14—The correct answer is c: 

The Consumer Financial Protection Bureau, which helps consumers resolve many types of complaints about credit reports and credit scores. But before filing a complaint with them at www.ConsumerFinance.gov/Complaint the Bureau recommends filing your complaint and obtaining a response from the credit bureau or other company with which you are dealing.

 

Q 15— Your credit score can impact which of the following:

A Loan approval

B Interest rates

C Having utilities in your name

D Renting a new home

E All of the above

 

A 15—The answer is e

All of the above. Your credit score is used to determine how likely you are to repay borrowed money.

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