Do You Know What Impacts Your Credit Score? Take This Quiz

Do You Know What Impacts Your Credit Score? Take This Quiz and Find Out

According to credit experts, 42% of U.S. consumers have credit scores between 550 and 699. As a result, these consumers typically don’t qualify for preferred interest rates and, depending on their overall credit profile, they may not even qualify for certain loans and credit cards. 

Throughout my years in the business I have seen first-hand how credit scores can wreak havoc on securing a favorable mortgage. Most clients we work with don’t have a clear picture of what impacts their credit profile and, more importantly, don’t know what steps they can take to help improve it. We find this short quiz, from credit consultants ApprovalGuard.com, to be immensely helpful when it comes to understanding how your credit profile works. Take a few minutes to see if your credit knowledge is up to par.

1. To have the best credit-profile impact, what is the maximum amount of your monthly credit line that should be used?
a) 70%
b) 30%
c) 50%

2. What is the number-one contributing factor to a good credit score?
a) Length of credit history
b) Amounts you owe
c) Payment history

3. If you pay 2% each month on your credit card (typical minimum payment), when will you pay off a $3,000 balance at 10% interest?
a) 18 years
b) 6 years
c) 3 years

4. After paying off a high-interest credit card, you should:
a) Continue using it occasionally
b) Close the account
c) Use the full amount of available credit every month

5. Applying for credit cards in order to just receive a free sign-up gift (t-shirts, mugs, etc.) has no impact on my credit profile?
True or False

6. Rewards points on credit cards are a good deal when:
a) I get cash back
b) I get free airline tickets
c) I carry no balance each month

7. To have a credit score, I must have at least one creditor reporting activity on my credit report for:
a) 12 months
b) 8 months
c) 6 months

8. Credit bureaus that manage your personal credit report data and credit scores are a:
a) Government entity
b) Non-profit agency
c) Regular business corporation

9. Banks and credit card companies think you are creditworthy by how many credit offers you receive by mail?
True or False

10. Credit scores are used by lenders mainly to:
a) Tell how I compare to other consumers
b) Tell if I make my payments on time
c) Predict the likeliness that I will repay my loan on time

Answers: 1 – c, 2 – c, 3 – a, 4 – a, 5 – False, 6 – c, 7 – c, 8 – c, 9 – False, 10 – c

If you find you answered more than half of these questions wrong, you’re not alone, says ApprovalGuard, whose surveys reveal that the majority of consumers do not know the answers to these and similar types of questions. The good news is it’s not too late. With a good understanding and proper guidance of how credit works, consumers can learn how to effectively manage their personal credit profile.

TheAragoneTeam.com

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About Aragone & Associates Realtors

President & CEO of Aragone & Associates Realtors at First Team. Director of the Trust & Probate division with years of experience in Real Estate Disposition. Mrs Aragone has represented many clients in the disposition of numerous of their assets. For over 13 years they have been privileged to be a part of many real estate success stories throughout Orange County – through increasing profits by obtaining higher sales prices, shorter marketing time, lower costs and added value with repairs and upgrades. Today they are recognized in the business community for their unique and innovative method of delivering professional real estate services to their clients. A method that goes beyond the traditional services that Realtors perform to one that is truly comprehensive; and that focuses on their clients needs as well as their personal and financial goals, all while providing value-driven advice as opposed to just selling a property. Paula Aragone and her Team have become Trusted Advisors to their clients and get to collaborate with many trust and estate attorneys, family law attorneys, financial advisors, Professional Fiduciaries, Executors, Successor Trustee as well as corporate trustees in the disposition of the real estate assets. Aragone & Assoc. has a Full-Time support staff including: Full-time Property Manager and Property Preservation Staff, Full-Time BPO/ Listing coordinator Department, Full-Time Account Receivable/Payable/Reimbusement Specialist, 1 Part-Time Administrative support team member, Full-Time Showing Agent.
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