CSB Financial Education

Credit

Welcome to Cambridge Savings Bank's Financial Education Program! We'd like to learn what you

know - and what you may be unsure of when it comes to managing your money. Let's get started!

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1. Please select your group number and survey you are taking today.

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2. What is revolving credit?

Money that you can borrow, repay, and re-borrow up to your credit limit

Money that revolves around your automobile purchases

Credit that revolves around your home purchases

Not sure

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3. What is an installment loan?

A loan to help you pay for all the new items you purchase

A specific amount of money for a specific length of time with monthly repayments

A loan that instills confidence in lenders to approve new loans

Not sure

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4. If you pay loans late, what will happen?

Your credit score will decrease by 100 points each time

Your credit score will decrease by 50 points each time

Your credit score will decrease, and you will be charged a late fee

Not sure

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5. FICO stands for…

Federal Inquiry of Credit Organization

Financial Institute of Credit Officials

Fair Isaac Corporation

Not sure

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6. Does maintaining a perfect payment record for 5 years increase your credit score more or less than doing this for 1 year?

More because 5 years demonstrates longer reliability

Less because the card you have had for 1 year is more recent

They increase your credit score the same amount because you handled both perfectly

Not sure

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7. Does having both revolving credit and installment loans increase your credit score?

Having both types of credit affects your credit score the same as if you had 1 type

Yes, because it demonstrates that you can handle different types of credit

Having both types of credit lowers your credit score because it shows too much borrowing

Not sure

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8. How do recent late payments compare to older late payments in decreasing your credit score?

Recent late payments decrease your credit score more

Older late payments decrease your credit score more

They decrease your credit score the same amount

Not sure

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9. A hard inquiry stays on your credit report for…

7 years

It varies

2 years

Not sure

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10. When setting interest rates for borrowers with high or low credit scores…

Lenders may charge borrowers with low credit scores a higher interest rate

According to the Fair Lending Act, lenders must charge the same rate to borrowers with low or high credit scores

According to the Fair Lending Act, lenders may charge a maximum of 10% higher interest rates for borrowers with lower credit scores

Not sure

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11. Late payments stay on your credit report for…

1 year

7 years

36 months

Not sure