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Name Manive fa
Date 9/17/29 Pd ✓
Unit 6 Test-Managing Credit
Directions: Answer ALL questions below. SHOW ALL WORK.
Part 1: Multiple Choice. Select ONE answer. Each question is worth one point.
1. All of these are true about late credit card payments, EXCEPT...
a) They can drop your credit score by as much as 100 points
b) They are an extremely rare occurrence among American credit cardholders
They can stay on your credit report for up to 7 years
d) They are the largest factor in your overall credit score
2. Which student is most likely to have the highest credit score?
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a) Hassan has 3 credit cards with low balances and often forgets which one they
need to make payments on and is late
b) Bekkah has 2 credit cards and they're usually near their credit limit
Kareem has 3 credit cards that they pay in full every month and recently applied
for a new line of credit
d) Sarah has never had a credit card and has over $10,000 in her savings account
3. Why is it important to check your credit report regularly?
a) To improve your credit score through frequent hard inquiries
To identify potential errors or fraudulent activity
c) To monitor the transactions on your credit card
d) To automatically increase the credit limit on your revolving credit accounts
4. If a potential lender checks your credit score and finds out it is above 750, which is
the most likely outcome?
a) You will be denied the loan
b) You will receive a loan with a low interest rate
You will receive a loan with a high interest rate
d) You will receive a loan with a low principal,
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