Credit_Reports_and_Scores_2.6.1.A1

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Fortis College, Salt Lake City *

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Finance

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Jan 9, 2024

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Page | 24 2.6.1.A1 © Take Charge Today – April 2014 – Credit Reports and Scores Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Credit Reports and Scores Total Points Earned Name 24 Total Points Possible Date Percentage Class Directions: Match the following definitions with the correct terms by placing the appropriate letter on each blank provided. (1 point each) 1. _______ A record of the borrower’s past loan and credit related transactions. a. Tax Lien b. Open end Credit c. Credit d. Closed end Credit e. Credit Report f. Credit History g. Lender 2. _______ A loan of a certain amount of money that a borrower must repay in a specified number of equal payments. 3. _______ When goods, services, and/or money is received in exchange for a promise to pay back a definite sum of money at a future date. 4. _______ A person or organization who makes funds available to borrow. 5. _______ A legal claim by a government entity to take an individual’s property or income when their taxes are not paid in full. Directions: Place an N on the line if the statement will create negative credit; place a P on the line if the statement will create positive credit. (1 point each) 6. _______ Maintaining a reasonable amount of unused credit. 7. _______ Routinely paying bills late. 8. _______ Numerous credit applications in a short period of time. 9. _______ Checking credit reports annually to search for mistakes. 10. _______ Having many of the same types of credit accounts.
Page | 25 2.6.1.A1 © Take Charge Today – April 2014 – Credit Reports and Scores Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Directions: Circle the correct letter for each of the following questions. (1 point each) 11. Which of the following is NOT on a credit report? a. Late medical payments b. Repayment history c. Buying habits d. Public Records 12. A negative credit report may impact an individual’s ability to receive all of the following EXCEPT? a. Insurance b. Apartment c. Loan d. A traffic ticket Directions: Choose from the answer bank to indicate how long each type of information remains on your credit report. Answers may be used more than once. (1 point each) 13. _______ Inquiries 14. _______ Late or missed payments 15. _______ Open accounts considered to be in “good standing” 16. _______ Medical information 17. _______ Closed accounts ANSWER BANK a. Never on a credit report b. Two years c. Seven Years d. Ten years e. Always on a credit report Directions: Answer the following questions in short answer format. 18. Describe the difference between open end and closed end credit and provide an example of each. (4 points) 19. Describe three ways a twenty year old may begin building credit. (3 points)
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