1. TRUE or FALSE: The ability to obtain a job, car and/or home loan critically depends on your credit history and score.
Answer to No. 1
2. What does FICO stand for?
a) Federal Insurance Credit Organization
b) Fair Isaac Corporation
c) Financial Income Credit Office
d) Fair Interest Consumer Organization
Answer to No. 2
3. What is a FICO score?
a) It keeps a report card of your late payments and debt.
b) It punishes consumers for going over their credit limit.
c) It's a three-digit number that determines the interest rate you will pay on your credit cards, car loans and home mortgages or whether you will be able to get a cell phone or have your application for a rental apartment accepted.
d) It offers credit cards.
Answer to No. 3
4. What is the biggest factor in determining your credit rating with lenders?
a) income level
b) home ownership
c) amount of debt
d) FICO score
Answer to No. 4
5. The average amount of time it takes to "clean up" a negative credit history is:
a) 2-3 years
b) 12 years
c) 7 years
d) 10 years
Answer to No. 5
6. TRUE or FALSE: A higher FICO score puts you in line for a lower interest rate on a loan or credit card.
Answer to No. 6
7. TRUE or FALSE: High school students are considered to be one of the "easier" targets by credit card companies because the companies know that students are uninformed and ready to spend.
Answer to No. 7
8. TRUE or FALSE: The only way to avoid credit card debt is to never use your credit card.
Answer to No. 8
9. TRUE or FALSE: You will never have to pay interest on your credit card if you pay your balance each month.
Answer to No. 9
10. Always use cash, not credit cards for:
a) emergencies, food, and movie tickets
b) food, movie tickets and anything less than $10.00
c) Internet shopping, emergencies and gas
d) gas, anything less than $50.00 and movie tickets
Answer to No. 10
11. If you charge $5,000 on a credit card at 20 percent and make the minimum monthly payment of 5 percent of the balance, how long will it take you to pay off the balance?
a) 6 months
b) 1 year
c) 7 years
d) 120 months
Answer to No. 11
12. By the end of a college student's freshman year, he/she will have accumulated an average of _________ in credit card debt alone.
b) $500.00 - $800.00
Answer to No. 12
13. What will you owe if you pay your credit card balance after the due date?
a) a late penalty
b) interest on your entire balance
c) both of the above
d) neither of the above
Answer to No. 13
Source: Credit Abuse Resistance Education (CARE) Program