H&R block budget quiz 3 2025
Questions and Answers
How does credit utilization affect your credit score? - --Answer --Keeping
credit utilization below 30% increases your score.
Which would not be identifying information included in a credit report? - --
Answer --Marital status
What would be the most likely difference between loans offered to someone with a
good credit score versus a loan offered to someone with an excellent score? - --
Answer --The person with good credit will pay a higher interest rate than the
person with excellent credit.
Which best describes the main role of the three major credit reporting agencies? - -
-Answer --Compile consumer credit and loan information and provide it to
lenders and businesses
Which is the best way for a college student to start building their credit score? - --
Answer --Apply for a credit card, use it to make small purchases and pay the
full balance each month.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Which of the following does not use consumer credit scores in the course of
business? - --Answer --Graduate schools for admissions purposes
Which is the best definition of credit? - --Answer --An agreement to receive
goods or services with a commitment to pay later.
Which reports on-time payments as positive transactions for a credit report? - --
Answer --Car loan payment
Which is an example of an open-ended revolving loan? - --Answer --Credit
card
Which is not a benefit of using a credit card when traveling? - --Answer --It
can be used as a legal form of identification in most states.
In what way can using a credit card be like getting an interest free loan? - --
Answer --Pay the balance in full at the end of the month and no interest is
charged.
Which is a drawback of using credit cards? - --Answer --Many consumers
find they spend more money if using a credit card.
Why is it important for a consumer to know their credit utilization on their credit
cards? - --Answer --High credit card utilization can lead to a reduction in a
cardholder's credit score.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Questions and Answers
How does credit utilization affect your credit score? - --Answer --Keeping
credit utilization below 30% increases your score.
Which would not be identifying information included in a credit report? - --
Answer --Marital status
What would be the most likely difference between loans offered to someone with a
good credit score versus a loan offered to someone with an excellent score? - --
Answer --The person with good credit will pay a higher interest rate than the
person with excellent credit.
Which best describes the main role of the three major credit reporting agencies? - -
-Answer --Compile consumer credit and loan information and provide it to
lenders and businesses
Which is the best way for a college student to start building their credit score? - --
Answer --Apply for a credit card, use it to make small purchases and pay the
full balance each month.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Which of the following does not use consumer credit scores in the course of
business? - --Answer --Graduate schools for admissions purposes
Which is the best definition of credit? - --Answer --An agreement to receive
goods or services with a commitment to pay later.
Which reports on-time payments as positive transactions for a credit report? - --
Answer --Car loan payment
Which is an example of an open-ended revolving loan? - --Answer --Credit
card
Which is not a benefit of using a credit card when traveling? - --Answer --It
can be used as a legal form of identification in most states.
In what way can using a credit card be like getting an interest free loan? - --
Answer --Pay the balance in full at the end of the month and no interest is
charged.
Which is a drawback of using credit cards? - --Answer --Many consumers
find they spend more money if using a credit card.
Why is it important for a consumer to know their credit utilization on their credit
cards? - --Answer --High credit card utilization can lead to a reduction in a
cardholder's credit score.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
