1- Are landlords allowed to use a potential tenant’s credit score (or credit report) as part of their decision as to whether they are going to approve the lease application?

A) Yes, this is a very common practice.

B) Yes, it’s technically allowed, but rare and almost never happens.

C) No, this practice is illegal.

2-. Are hiring managers allowed to use a potential employee’s credit score (or credit report) as part of their decision as to whether they are going to hire the applicant?

A) Yes, this is a common practice. Credit history is sometimes seen as a reflection of an individual’s overall level of trustworthiness.

B) No, this practice is illegal.

3-Suppose you want to build your credit so you can obtain a mortgage in the future. Which of the following will help you build or improve your credit score in the long run?

A) Obtain a credit card, and use the credit card responsibly.

B) Avoid financial mistakes by not getting a credit card - instead make all purchases using a debit card that is tied to my checking account.

4- Suppose you have a credit card and a checking account. You can afford to purchase the $100 book and homework system for MTH 102 using money in your checking account, but you decide to use your credit card instead. When you receive your credit card statement, you have a minimum payment of $20, that is due on December 1.

Which of the following is the better for your credit score?

A) It is better for my credit score to pay the minimum payment of $20 on time (before December 1), and to continue to pay the minimum payment of $20 on time for all future months until the debt is paid off. Although this method requires me to pay interest, I am demonstrating that I am responsible and able to make monthly payments.

B) It is better for my credit score to pay off the entire amount of $100 before December 1 (and therefore paying $0 in interest). This is showing that I make financially responsible decisions.

5- Which is WORSE for your credit score?

A) Having a balance of $1,000 on a credit card with a $5,000 limit.

B) Having a balance of $1,000 on a credit card with a $1,000 limit.

C) Neither of the above – both have the exact same impact on a credit score.

6- Suppose you have good credit. Also suppose that one of your friends has bad credit, which is making it difficult for him to obtain a car loan. The banks inform your friend that the only way for him to get a car loan is for him to have someone with a good credit score cosign the loan with him.

Your friend convinces you to cosign a 5-year car loan, and promises you that he will make all of the required monthly payments.

Two years later, you find out that your friend wasn’t making the required monthly payments.

Are you allowed to remove your name from the loan so you are no longer a co- signer?

A) Yes, I can do that at any time.

B) No, the only way for my name to be taken off this loan is for the loan to be paid in full.

7- (same set-up as the previous question)

Will your friend’s actions damage your credit score?

A) No, since I was only a cosigner, my friend’s lack of financial responsibility will not impact my credit score.

B) Only a little – issues arising from cosigned loans are not viewed as very important on a credit report.

C) Yes – when I cosign a loan, I am taking equal responsibility for the payments, even if I do not have access to the car that was purchased using the loan. This would be just as bad on my credit report as it would have been if it was a car loan for myself.

8- (same set-up as the previous question)

Can you be sued by a debt collection agency for your friend’s car loan?

A) No. They can only sue the person who possesses the car.

B) No. Since my friend was the primary person listed on the loan, they can only sue my friend.

C) Yes. They can sue me, but only if they also sue my friend.

D) Yes. They can sue me, but only for a small portion of the amount owed.

E) Yes. They can sue me for the total amount owed (even if they do not sue my friend).

9- True or False: For most credit card companies, making less than the minimum payment counts as a missed payment, which will bring down your credit score, trigger a late fee and possibly raise your interest rate.