According to a recent article  in RISMEDIA, Forty-two percent of consumers in the good ole U.S. of A  have credit scores between 550 and 699. While a credit score close to 700 used to be considered unquestionably an A-credit score, the credit crunch has re-set the limits, and scores in this range no longer guarantee automatic qualification for particular loans or credit cards. Surprisingly, many consumers are unaware of what comprises a good credit score. Here is a quiz taken from the article that will test your knowledge in the credit scoring arena, and we challenge you to take it:

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

2. What is the top contributing factor to what makes 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 credit-worthy 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

So how did you do?  If you only got about half of them correct, you scored about as well as the majority of the subjects who were involved in the survey addressed in the RISMEDIA article. But this is a credit blog, and all our readers are presumably very well educated regarding what comprises a credit score, right?

You don’t have to admit it, but I will — I even had to think about a few of these (notice I didn’t admit I was wrong). I guess that might be human nature. But if those of us that hang out in a credit blog and forum can’t ace the test, think about the general populus!

How did you do? Leave a comment and let us know!

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