Take The Credit Quiz. . . See How You Score

TEST YOUR CREDIT KNOWLEDGE

In today's economy many consumers have experienced rough time with their credit, due mostly to layoffs, downsizing, right sizing, or other corporate shrinkage. Many are facing, for the first time in their lives, bankruptcy, foreclosure, or simple financial mismanagement due to their economic situation. All these situations can have a detrimental effect on their credit score.

More than forty percent of U.S. consumers have credit scores below 650. As a result, they typically don't qualify for preferred interest rates and, depending on their overall credit profile, may not qualify for certain loans and credit cards. Most consumers don't understand what affects their credit profile, or what actions they can take to help improve it.

On average, U.S. consumers have about 13 credit obligations on their credit report. These can include installment loans (auto loans, mortgage loans, student loans, etc.) and credit cards (such as department store charge cards, gas cards, or bank cards). As a result of the numerous outstanding credit obligations, combined with the lack of proper knowledge and guidance about what impacts their credit profile, they ends up spending thousands of dollars on unnecessary interest expenses.

With a good understanding and guidance of how credit works, consumers can learn how to effectively manage their personal credit profile. Improvements can be obtained fairly rapidly with a reputable credit coaching service www.apprisen.com and the proper changes. In these economic times, every responsible consumer should proactively evaluate, optimize and protect their credit before they have a credit need or issue arises.

This short quiz will help test how much you know about your credit profile and how it works.

1. To have the best credit profile impact, what is the maximum amount of your monthly credit line you should use?
a) 70%
b) 30%
c) 50%

2. What is the top contributing factor to what makes a good credit score?
a) Length of credit history
b) Amounts you owe
c) Payment history

3. If you pay 2% each month on your credit card (typical minimum payment), when will you pay off a $3,000 balance at 10% interest?
a) 18 years
b) 6 years
c) 3 years

4. After paying off a high-interest credit card, you should:
a) Continue using it occasionally
b) Close the account
c) Use the full amount of available credit every month

5. Applying for credit cards in order to just receive a free sign-up gift (t-shirts, mugs, etc.) has no impact on my credit profile?
True or False

6. Rewards points on credit cards are a good deal when:
a) I get cash back
b) I get free airline tickets
c) I carry no balance each month

7. To have a credit score, I must have at least one creditor reporting activity on my credit report for:
a) 12 months
b) 8 months
c) 6 months

8. Credit bureaus that manage your personal credit report data and credit scores are a:
a) Government entity
b) Non-profit agency
c) Regular business corporation

9. Banks and credit card companies think you are credit-worthy by how many credit offers you receive by mail?
True or False

10. Credit scores are used by lenders mainly to:
a) Tell how I compare to other consumers
b) Tell if I make my payments on time
c) Predict the likeliness that I will repay my loan on time

Answers: 1 - c, 2 - c, 3 - a, 4 - a, 5 - False, 6 - c, 7 - c, 8 - c, 9 - False, 10 - c