Credit Webquest

DIRECTIONS: Use the Better Money Habits website to answer these questions about credit,
building credit, and credit scores. https://www.bettermoneyhabits.com/credit.html
Part I What is a Credit Score?
1. What is a credit score?-is a three digit number based on information in your credit report
that measures your risk level to lenders. It
2. What 5 factors shape your credit score?-credit inquires, payment history, types of credit,
total owed length of credit history
3. What are 3 ways to find out your credit score?-get a free report, buy your score , get an
estimate
4. What institutions determine your credit score? [This is in the video you may read the
transcript!] 5. How does your credit score impact your ability to get a loan?-it shows as to how risky your
are when it comes to loan
6. How might your credit score impact your loans interest rate? - If it were bad it might be
higher but if it was good then it might be lower.
7. What is the difference between a credit score and a credit report? credit report is a
compiled history of all your accounts and payments across all your credit products while
credit score is the risk for loans
8. What is the average credit score in the US?-692
9. What is considered a good credit score?-700
10.Why might you have a low credit score?Part II Ways to Build Credit
11.Explain how each of these factors impacts your credit score & how to improve your score
in this area:
a. Payment Historyb. Amounts Owedc. Length of Credit Historyd. Types of Credite. Recent Activity12.What are the 3 national credit-reporting bureaus?-Equifax, Experian, Transunion
13.What website can you go to for a free credit report each year?-annualcreditreport.com
14.Which way to boost your credit score seems the easiest? Why?15.Identify the numerical ranges for each category of credit scores:
a. Excellent =
b. Great =
c. Good =
d. Fair =
e. Poor =
f. Very Poor =
Part III Keeping Credit Healthy
Explain whether the statements are true or false and WHY.
16.Carrying a high balance on revolving credit (credit cards) hurts your credit score.17.You need to carry a high balance on your cards month to month to show youre using
them.18.Soft inquiries, where lenders check your credit when you apply for a new card or loan, do
not hurt your credit score.-

19.If your parents co-sign on a credit card for you and you dont pay your bills, it does not
affect your parents credit just yours. 20.
Applying for a lot of credit cards at once hurts your credit scor e.-