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Credit is one of the most important things in our financial lives but not everyone fully understands it. Test your credit knowledge with these 15 questions.

Think You Know About Credit? Can You Pass This Quiz?

850 is the highest score possible but anything above 720 can be considered "excellent."

A seemingly random but important number

What is the highest FICO credit score you can have?

While you can't hit 0, 300 is still really really bad.

Just for fun, what's the lowest FICO credit score possible?

In addition to the three major credit bureaus each providing their own score, there are several ways for creditors to calculate scores (FICO is one method). This means you could have a dozen or more credit scores.

You could have over a dozen!

True or False? — Everyone only has one credit score.

It's not quite there yet (it reached over $950 billion in May) but credit card debt in the U.S. is on track to hit $1 trillion this year.

With a 't'

By the end of the year, U.S. consumers will have a combined credit card debt of:

Lines of credit are treated differently than loans where you pay in installments. Having both assists your "credit mix" which is accounted for in your FICO credit score.

Credit cards = revolving credit

Which of the following is an example of revolving credit?

While one card may offer an introductory 0% interest rate and no annual fee at the same time, they are not the same thing at all. "Annual fees" refer to the fact that some high-end cards charge you hundreds of dollars just for the privilege of having one. Be sure to check the actual interest rate (including what the rate will be after the 0% offer ends) before signing up for any credit card.

Not even close

True or False? — When credit cards advertise “no annual fee,” that’s the same as “0% interest.”

Not only can your credit get dinged for making a late payment but, if you're more than 60 days late, your card issuer may also raise your APR. Moral of the story: pay on time.

Double ouch

True or False? — Your credit card’s APR can go up if you make a late payment.

Of the five factors that go into your FICO credit score, your payment history has the most weight.

Payment history makes up 35%

What single factor makes up the largest chunk of your FICO credit score?

Even if you only pay late once it could show on your report for the next seven years. The good news is that its impact on your score should decrease over time. Still, it's just one more reason to pay on time.

Just like swallowed gum, it'll stick with you for a while

If you make a late payment, how long will that show on your credit report?

Contrary to popular belief, paying off your credit card balance monthly is a good thing. There is NO need to carry over a balance and it will not boost your credit score to do so.

A bad myth

True or False? — Paying off your credit card every month won’t earn you any credit. Holding a balance will help increase your score as long as you pay on time.

A hard inquiry may actually affect your credit slightly. However soft inquiries will not affect your score at all. Typically applying for a loan or credit card will require a hard inquiry while background checks will only do soft inquiries.

Known as "hard" and "soft" inquiries

True or False? — There are two different types of credit inquires: one that could ding your score and one that won’t.

Although you'll be asked how much you make when applying for a credit card, this information does not appear on your report. However, this doesn't mean you should lie about how much you make on applications as there are ways for creditors to verify the information and fraud is illegal.

They don't know everything

Which of the following is least likely to be revealed on your credit report?

As mentioned, all of these bureaus hold reports on your credit. Some creditors may report to just one while others might report to all three.

The Big Three

Which of these is NOT the name of one of the three major credit bureaus:

APR stands for annual percentage rate and is not synonymous with interest rate. While APR includes the interest rate, it also factors in other fees and costs.

A common source of confusion

True or False? — APR is just another term for “interest rate.”

If your card has a limit of $1,000, it's best to not put more than $300 on it at one time to keep your usage under 30%. Additionally this is PER CARD.

The lower the better

Finance experts recommend that you use less than what percentage of your revolving credit?

You need a crash course in credit! Be sure to learn the basics so you can get better rates on credit cards, loans, and mortgages.

You could use some training

You know a few things about credit but there's still some more that you should know. Maybe do some Googling on the one's you missed.

It could have been worse

You know a lot about credit but there's always room for improvement.

Pretty good!

Well played! You really know your stuff and I bet it shows in your credit scores. Keep up the good work.

You're a credit wizard!

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Think You Know About Credit? Can You Pass This Quiz?

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