A Credit and Loan Quiz

A Credit and Loan Quiz

If you have been reading these blogs for some time now, and also other blogs that are posted on finance, credit scoring, loans, and money, you may consider yourself quite knowledgeable about credit issues, and personal finances.

So how about a little quiz, a test to see just how much you do know and understand about credit scoring, taking out a loan, and also credit reports.

Each question will be worth 2 points, and the answers are at the bottom of the page, along with a guide as to how you did, so no cheating, and off you go!

1) A high credit score is good, and a low credit score is bad?

A) True

B) False

2) APR stands for the following:

A) Annual payment rate

B) Annual percentage rate

C) Annual payback rate

3) There are three (3) main credit bureaus in the UK?

A) True

B) False

Extra points if you can name one or more.

4) What does CCJ stand for?

A) County Court Judgment

B) Civil Court Judgment

C) Court Collections Judgment

5) It is easy to change and rebuild your credit file?

A) True: Anyone can have their credit reports changed and a bad credit history removed.

B) False: A credit report must be an accurate portrayal of how you have paid your accounts.

6) Anyone can make you bankrupt if you owe them more than £5,000?

A) True

B) False

7) Which of these is NOT a part of your credit report:

A) If you are on the electoral role

B) Your salary

C) Previous addresses

8) What is a guarantor for a loan?

A) Someone who helps you complete the loan application.

B) Someone signing for the loan and stating if the borrower fails to pay the loan, they will.

9) Loans can be broken down into two (2) categories:

A) Personal and non-personal

B) Secured and unsecured

C) Bad credit and good credit loans

10) Applying for a lot of loans at one time does NOT hurt your credit score?

A) True, applying for loans can help your credit score.

B) False, too many inquires or footprints reduces and lowers your credit score.

OK, ready to see how you did, here are the answers:

1) A True

2) B Annual percentage rate

3) A True Experian, Equifax, Call Credit (now Transunion)

4) A County Court Judgment

5) B False Credit reports need to be accurate and factual, they cannot be changed just to make your credit look better.

6) A True If you owe someone more than £5,000 they do have the option of making you bankrupt, they also will pay all the fees required to make you bankrupt.

7) B Your salary Wages are not shown on credit histories.

8) B A guarantor is someone who will be responsible and liable for the loan payments if the borrower fails to pay them.

9) B Is the correct answer. However, some loans can be broken down into bad credit loans, and/or personal loans.

10) B False Inquiries or footprints are left every time a lender or someone looks at your credit report, too many of these lowers your credit score. And if we remember the answer to question number one, a low credit score is not good.

So how did you score?

There are 2 points for each question, with a total of 20 points available.

18 – 20 points: Excellent

16 points: You did good, but need to review the questions you missed.

12-14 points: You need to review some of the blogs on our site to update what you may know about credit and loans.

10 points or less: Not too good, review the questions you missed and also research more on loans, credit scoring, and credit reports.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.