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Test Your Knowledge of Credit Scoring

December 6, 2022 by superuser

Lenders run a credit check before you apply for your first mortgage or refinance your current mortgage. Lenders use a scoring system to determine your loan eligibility and even the interest rate you will be offered. Numerous variables go into calculating credit scores. How well-versed are you in the current credit scoring methodology? Here is a 10 question quiz to help you find out:

1. True or false: Your credit report’s information is always accurate.

2. Which of the following statements about national credit reporting companies is true?

3. True or False: Unless you make a habit of paying your bills late, an occasional late payment won’t appear on your credit report or have an impact on your credit score.

4. True or False: Your credit score may be impacted if you recently applied for numerous new credit accounts.

5. True or False: If you are denied credit, there is no way to find out why.

6. True or False: You can raise your credit score by making on-time payments, reducing balances, and avoiding taking on new debt.

7. True or False: Raising your credit score takes little time.

8. True or False: You cannot obtain a mortgage if your credit score is low.

9. True or False: When assessing your credit report, credit bureaus may take into account details like your marital status and country of origin.

10. The availability of free credit reports is true or false.

ANSWERS:

1. False; credit reports occasionally contain errors. Before submitting a mortgage application or refinancing your house, make sure to check your credit report.

2. It is true that Equifax, Experian, and TransUnion are the three main credit reporting agencies.

3. False. Any late payments on bills will almost certainly lower your credit score.

4. Yes, if you have recently applied for too many new accounts, it could have a negative impact on your credit score.

5. False. The creditor is required by law to provide you with the reasons your application was rejected within 60 days if you ask for the information.

6. It’s true that doing all of these things will raise your credit score.

7. True, but it may take some time to raise your credit score.

8. False. Although the interest rate might be higher, you can still get a mortgage or refinance your mortgage with a lower credit score. More details on these mortgages can be found at [http://www.mortgage-refinancing-online-guide.com].

9. It is untrue that credit companies can make decisions based on these factors.

10. It’s true that http://www.annualcreditreport.com allows you to get a credit report for free today. By the way, an 850 credit score is considered ideal.

SCORING:

1-5 You should read up on credit scoring. Visit [http://www.mortgage-refinancing-online-guide.com] and read some of the articles there.

6-8 You are well-versed in credit scoring. Keep up the good work.

9-10 You might want to think about a career in mortgage loans. Great job!

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