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Your credit is of critical importance, affecting your ability to buy a car, a home and in some states even auto insurance. Think you’re an expert? Take this quiz to see what you know—and need to know—about your credit rating and more.

  • You’ve probably heard the term credit score, a number that generally ranges from 300 to 850. Which of the following best describes the significance of this figure?

    (A)It’s a reflection of your credit card payment history, typically capturing seven years.

    (B)It’s a gauge of your ability to borrow money in the future—and at what interest rate.

    (C)It’s a reflection of how you have repaid loans, debts and other financial obligations during the past seven years.

    (D)All of the above.

  • Which one of these factors influences your credit score the most?

    (A)Your history of paying back debts on time.

    (B)How much debt you’re currently carrying.

    (C)The length of your credit history; that is, how long you’ve had and used credit.

    (D)Your credit mix: credit cards, mortgages, student loans, etc.

  • If you want to improve your credit score, what should be your first step?

    (A)Trying to eliminate your credit card debt.

    (B)Paying off any outstanding student loans or medical bills.

    (C)Checking your credit reports.

    (D)Avoiding taking out new loans.

  • Your credit report and your credit score can affect your ability to get which of the following loans:

    (A)A mortgage

    (B)A loan to start a business

    (C)A loan to buy a car

    (D)All of the above

  • Which of the following is not a good way to build credit?

    (A)Relying exclusively on a debit card.

    (B)Signing up for a new secured credit card.

    (C)Paying your credit card bills in full each month.

    (D)Seeking a credit limit increase on your credit cards.

  • When it comes to using credit cards, what’s the best way to build good credit?

    (A)Maxing out your cards occasionally, then completely paying off the balance.

    (B)Keeping your spending below 50% of your credit limit on a given card.

    (C)Using only one credit card per month.

    (D)Staying below 30% of your credit limit on a given card.

  • Which of the following is not a good way to eliminate credit card debt?

    (A)Trying to pay off one credit card in full before moving on to the others.

    (B)Paying only the minimum amount due on all your cards each month.

    (C)Calling the credit card company and asking for a lower interest rate.

    (D)Transferring the balance to a card with a lower interest rate.

  • It’s better to have more than one credit card because:

    (A)You reap the benefits from different incentive programs; for example, travel or grocery rewards.

    (B)You have backup in the event of a lost or stolen credit card.

    (C)Your credit rating may improve.

    (D)All of the above.