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?
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?
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?
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.