Credit is important – it’s what enables you to get a car loan, home mortgage, a cell phone plan, and utilities. And that means if you want to achieve your life goals, you need to understand how credit works.
Take our credit quiz and test your credit knowledge!
- What’s the minimum score you need to have a “good” credit score?
A: While there is no definition of a “good” credit score, a minimum score of 680 is considered good.
Q: Your credit score can be negatively impacted if you check your own credit reports.
A: False. Your credit score is not negatively impacted if you check your own credit reports. In fact, the Fair Credit Reporting Act requires that credit reporting agencies provide you with a free credit report every 12 months.
Q: You only have one credit score.
A: False. There are three major credit bureaus, Equifax, Experian and TransUnion. Each bureau calculates its own credit score.
Q: Your credit score can impact which of the following:
- Loan approval
- Interest rates
- Having utilities in your name
- Renting a new home
- All of the above
A: All of the above. Your credit score is used to determine how likely you are to repay borrowed money.
Q: Paying your credit balance in full each month can positively impact your credit score.
A: True. This goes to your credit utilization, which is how much credit you are using in relation to your credit limit.
And if you’re renting, did you know that having your on time rent payments reported to the credit bureaus can help build and improve your score? At RentReporters, the process is simple. You sign up for an account, we verify your rent payments, and we report your rent to TransUnion. Your credit score can then improve within 15 days!
For more information on RentReporters, visit here.