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
wwwmortgage-refinancing-online-guidecom
9 False Credit companies cannot discriminate based on these
factors
10 True You can now obtain a free credit report through
wwwannualcreditreportcom By the way, a perfect credit score
is 850
SCORING:
1-5 You need to learn more about credit scoring Go to
wwwmortgage-refinancing-online-guidecom, 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!

Tags | credit, equifax, existing, experian, national, nationwide, question, reporting, scoring