Credit Basics Quiz: Test Your Knowledge on Personal Finance

📚 Quick Study Guide

• 💳 Credit Score Ranges: 🔢 Excellent: 750+, Good: 700-749, Fair: 650-699, Poor: Below 650.
• 💰 Credit Utilization Ratio: ⚖️ Amount of credit used / Total credit available. Aim to keep it below 30%.
• ⏱️ Payment History: 📅 On-time payments are crucial. Late payments can significantly lower your credit score.
• 📈 Types of Credit: 📊 Credit cards, loans (installment and revolving), mortgages.
• 💡 Impact of Credit: 🏡 Affects loan interest rates, insurance premiums, and even job opportunities.
• 📝 Credit Report Agencies: 🏢 Equifax, Experian, TransUnion. You can get a free report annually from each.
• 🔒 Secured vs. Unsecured Credit: 🛡️ Secured credit requires collateral (e.g., a car for a car loan), while unsecured credit does not (e.g., a credit card).

📝 Practice Quiz

1. Which of the following is NOT a major credit reporting agency?
   1. Equifax
   2. Experian
   3. TransUnion
   4. Federal Reserve
2. What is a good credit utilization ratio to maintain?
   1. Above 50%
   2. Around 30% or below
   3. Exactly 100%
   4. Between 70% and 80%
3. A credit score of 760 is generally considered:
   1. Poor
   2. Fair
   3. Good
   4. Excellent
4. Which type of credit requires collateral?
   1. Unsecured credit
   2. Revolving credit
   3. Secured credit
   4. Installment credit
5. What is the primary factor that impacts your credit score?
   1. The number of credit cards you have
   2. Your payment history
   3. Your income level
   4. Your age
6. Which of these is an example of revolving credit?
   1. Mortgage
   2. Car Loan
   3. Student Loan
   4. Credit Card
7. Why is it important to check your credit report regularly?
   1. To lower your credit score
   2. To identify errors or fraudulent activity
   3. To increase your debt
   4. It is not important