Question 1: 4 points

The higher the credit score, the better your chances for loan approval.

True
False

Question 2: 7 points

A perfect credit score (850) allows the borrower immediate access to unlimited credit.

True
False

Question 3: 13 points

One universal credit scoring system is used by every single credit union in the country.

True
False

Question 4: 22 points

Your credit score updates annually on January 1st.

True
False

Question 5: 31 points

Individuals with poor credit scores:

may still be approved for a loan
may pay a higher interest rate
may be required to provide collateral and/or a cosigner
all of the above

Question 6: 39 points

To approve a loan, lenders may take into account factors other than your credit score, including which of the following:

race
religion
total income
national origin

Question 7: 46 points

Numerous credit report inquiries can have a negative impact on your credit score.

True
False

Question 8: 55 points

A potential employer may reject your employment application based on your credit score.

True
False

Question 9: 61 points

An indication of bad credit will remain on your credit report for up to 12 years.

True
False

Question 10: 74 points

When making a loan decision, the lender will often look at your debt ratio in conjunction with your credit score. A debt ratio is typically calculated by dividing:

assets by liabilities
liabilities by equity
monthly debt payments by monthly income
total debt in good standing by total delinquent debt

Question 11: 87 points

A credit bureau is:

a type of credit union
an independent organization that provides credit scores to financial institutions
a large vault that contains the credit history of every borrowing American citizen
a government agency that audits credit files

Question 12: 93 points

The Transparent Bankruptcy Act (TBA) of 2008 prevents any and all bankruptcies from having a negative impact on your credit score.

True
False

Question 13: 101 points

Some online lenders can approve you instantly by accessing your credit score.

True
False

Question 14: 104 points

If you find incorrect information on your credit report:

don't panic, most lenders will recognize it as incorrect information
you should contact the reporting agency directly to have it fixed
leave it alone - trying to correct it may lower your credit score
you will need to apply for a new social security number

Question 15: 113 points

Credit scoring systems must be:

reviewed periodically for legal compliance
routinely updated to reflect current U.S. Treasury rates
approved annually by the U.S.D.A.
all of the above