By now, most of us know that every time someone checks a credit score, that score goes down a bit. It makes no sense to me since we're simply seeking important information. If you check your blood pressure often, should the reading go up simply as a function of checking it? But I digress...
There are other facts about credit scoring you might not know. Using information provided by loan officer Bill Carey of Santander Bank on Cape Cod, I created this quiz. See how you do. The answers are at the end.
1. Credit scores range from 300 to 850. 58-percent of the U.S. population falls within which range:
a. Below 600
c. 700 and above.
2. Every active credit card over ________ will drop the score.
3. You'll have no hit to your credit score if you pay collection within _______months.
4. True or False, paying credit card balances in full and closing the account hurts your credit score.
5. True or False, having zero balance on a credit card hurts your score.
1. c. 58-percent of the population has a score of 700 or over. 27-percent is 600-699, 15-percent is below 600.
2. b. The correct answer is 5.
3. c. You'll take no hit to your score if you pay collections within 6 months.
4. True. Closing the account will damage your credit. Makes no sense, I know.
5. True. This one also makes no sense, but, oh well.
Thanks to Bill Carey of Santander Bank. If you'd like to contact him about financing for a new home purchase, email him at email@example.com.