Home » Finance » Personal Finance

Credit Score: True or False

Oct 9, 2007
How much do you know about your credit score? Test your knowledge by answering the following true or false questions.

A high credit score means you will always be approved for a line of credit, while a low score means you will be turned down. True or False?

False. Your credit score is rarely the only determining factor of whether or not you are approved or denied for credit. Lenders and creditors take several key points into account when deciding whether or not to extend credit to you, only one of which is your credit score. Your payment history, total debt, and employment history are also taken into consideration. A consumer with a high credit score that has an sporadic job history or high debt load can be denied for credit. Likewise, a consumer with a low credit score that has no credit history may very well be approved.

Credit scores do not take into account factors such as gender, race, marital status, or nationality. True or False?

True. Under the Equal Credit Opportunity Act, lenders are not permitted to use this kind of information in determining your credit risk. Credit scoring only uses information relevant to credit to calculate your credit score. The types of factors listed above are not used to determine your credit score.

Lenders are not obligated to reveal why you were turned down for credit. True or False?

False. By law, a creditor must inform you, in writing, of the reason or reasons that you were turned down for credit within 30 days. Not only that, you are entitled to a free copy of the credit report that was used to asses your credit.

Closing old credit accounts will undoubtedly raise your credit score. True or False?

False. Closing out your old credit accounts is not a sure fire way to improve your credit score. In fact, it could actually backfire on you and lower your score, especially if the account still has a balance. The history attached with an account does not disappear just because you close it.

Inaccurate information can be taken off of your credit report. True or False?

True. You are permitted to dispute inaccurate information by notifying the credit bureau reporting the information. Once the credit bureau receives this notification, they are required to investigate and give you a response within 30 days. After that time, the credit reporting agency will either remove the information from your credit report, provided it was truly incorrect, or inform you why it will not be removed.

Educating yourself about credit scores is highly recommended and will ensure that you are doing what you can to improve your own credit rating.
About the Author
Peter Kenny is a writer for Finance 123. Please visit us at Low APR Credit Cards and Consumer Debt Consolidation
Rating:
Please Rate:
(Average: Not rated)
Views: 105
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources