UGBA 135 EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
What is the highest credit score you can get on a FICO - ANS 850 is the highest score, and the
lowest is 300
When is the best time to establish good credit? - ANS When you don't need it
Know what a debt-to-credit ratio is - ANS The amount of debt you currently have divided by
the amount of credit you have available
Stay below a 50% debt-to-credit ratio on each credit card
30% ratio is best for top scores
If you think you have been a victim of CC theft, what is the first thing that you do? -
ANS Immediately contact the 3 major credit bureaus and put "fraud alert" on your account
Close all accounts as soon as possible
If you have a balance in your account and you pay more than the minimum amount due, what is
your excess payment applied to? - ANS The payments must be first applied to the balance
with the highest interest rate, which benefits the consumer
What is a credit hold on your account? - ANS when a hotel or car rental charges more money
just incase damage is done-if you go over limit you worry about over draft fees, if hold is
executed if will count against credit-don't have to tell how much hold is-no maximum interest
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, rate, virtually eliminated teaser rates-an unused credit hold may not create an over limit charge
unless hold is executed
What is the max. rate of interest they can charge you on a CC account? - ANS No limit
Who is allowed to check your credit scores? - ANS Anyone with approval
What is the website (the one federally mandated website) for a free credit report? -
ANS www.annualcreditreport.com
Is a credit card a "secured" or "unsecured" line of credit? - ANS A credit card is an unsecured
line of credit because it is not guaranteed by an asset
Unsecured credit comes with higher interest rates
A secured line of credit is guaranteed by an asset, such as a home or car
How many FICO scores does a person usually have? - ANS One from each of the three major
credit bureaus
Close to one another, but it's because they have different information
If you cancel an inactive credit card, does your credit score go up or down? - ANS Down,
because it hurts your credit length history (which amounts to 15% of your credit score) becomes
more difficult to qualify for a credit card
According to the CC law, can you get cash out of an ATM with your CC and not get charged for a
fee? - ANS Never use a credit card in an ATM except for an emergency because usually you
will get charged a 3-4% fee
With a CC, what is the grace period? - ANS A period in the billing cycle during which no
penalty is due as long as payment is received on time by the lender. Lasts 21 days
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS. VERIFIED 2025/2026.
What is the highest credit score you can get on a FICO - ANS 850 is the highest score, and the
lowest is 300
When is the best time to establish good credit? - ANS When you don't need it
Know what a debt-to-credit ratio is - ANS The amount of debt you currently have divided by
the amount of credit you have available
Stay below a 50% debt-to-credit ratio on each credit card
30% ratio is best for top scores
If you think you have been a victim of CC theft, what is the first thing that you do? -
ANS Immediately contact the 3 major credit bureaus and put "fraud alert" on your account
Close all accounts as soon as possible
If you have a balance in your account and you pay more than the minimum amount due, what is
your excess payment applied to? - ANS The payments must be first applied to the balance
with the highest interest rate, which benefits the consumer
What is a credit hold on your account? - ANS when a hotel or car rental charges more money
just incase damage is done-if you go over limit you worry about over draft fees, if hold is
executed if will count against credit-don't have to tell how much hold is-no maximum interest
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, rate, virtually eliminated teaser rates-an unused credit hold may not create an over limit charge
unless hold is executed
What is the max. rate of interest they can charge you on a CC account? - ANS No limit
Who is allowed to check your credit scores? - ANS Anyone with approval
What is the website (the one federally mandated website) for a free credit report? -
ANS www.annualcreditreport.com
Is a credit card a "secured" or "unsecured" line of credit? - ANS A credit card is an unsecured
line of credit because it is not guaranteed by an asset
Unsecured credit comes with higher interest rates
A secured line of credit is guaranteed by an asset, such as a home or car
How many FICO scores does a person usually have? - ANS One from each of the three major
credit bureaus
Close to one another, but it's because they have different information
If you cancel an inactive credit card, does your credit score go up or down? - ANS Down,
because it hurts your credit length history (which amounts to 15% of your credit score) becomes
more difficult to qualify for a credit card
According to the CC law, can you get cash out of an ATM with your CC and not get charged for a
fee? - ANS Never use a credit card in an ATM except for an emergency because usually you
will get charged a 3-4% fee
With a CC, what is the grace period? - ANS A period in the billing cycle during which no
penalty is due as long as payment is received on time by the lender. Lasts 21 days
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
