Quiz: How Much Do You Know About Credit Scoring?
Before you get a mortgage for the first time, or refinance your
existing mortgage, lenders run a credit check. Lenders use a
scoring system to decide whether or not you are a good candidate
for a loan, and even what rate you will qualify for. Credit
scores are based on a number of factors. How much do you know
about the current credit scoring system? Here is a 10 question
quiz to help you find out:
1. True or False: Information on your credit report is always
accurate.
2. True or False: There are currently 3 nationwide
credit-reporting companies.
3. True or False: An occasional bill paid late will not show up
on your credit report or affect your credit score, unless you
make a habit out of paying bills late.
4. True or False: If you have applied for many new credit
accounts recently, that could affect your credit score.
5. True or False: If you are denied credit, you have no way of
finding out why.
6. True or False: You can improve your credit score by paying
bills on time, paying down balances, and not accumulating
additional debt.
7. True or False: Improving your credit score is a fast process.
8. True or False: If your credit score is low, you cannot get a
mortgage.
9. True or False: Credit companies may take factors such as
marital status and national origin into consideration when
evaluating your credit report.
10. True or False: Credit reports are available free.
ANSWERS:
1. False. There are sometimes inaccuracies on credit reports.
Be sure to review your credit report before applying for a
mortgage or refinancing your home.
2. True. There are 3 main credit reporting agencies: Equifax,
Experian, TransUnion.
3. False. Any bills paid late are very likely to negatively
impact your credit score.
4. True. It may negatively affect your credit score if you have
applied for too many new accounts in the recent past.
5. False. If you ask for the information, the creditor is by
law required within 60 days to inform you of the reasons your
application was denied.
6. True. All of these things will help you improve your credit
score.
7. False. It can take awhile to improve your credit score.
8. False. You can get a mortgage or mortgage refinancing even
with a lower credit score though the interest rate may be
higher. There is more information on these types of mortgages on
www.mortgage-refinancing-online-guide.com.
9. False. Credit companies cannot discriminate based on these
factors.
10. True. You can now obtain a free credit report through
www.annualcreditreport.com. By the way, a perfect credit score
is 850.
SCORING:
1-5 You need to learn more about credit scoring. Go to
www.mortgage-refinancing-online-guide.com, and browse the
articles. 6-8 You know a lot about credit scoring. Keep up the
good work. 9-10 You might want to consider a career in mortgage
loans. Great job!