Think You Know About Credit Scoring? Take This Quiz

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. 

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1.   Credit scores range from 300 to 850.  58-percent of the U.S. population falls within which range:

       a. Below 600
       b. 600-699
       c.  700 and above.

2.   Every active credit card over ________ will drop the score.

         a. 3
         b. 5
          c.  7

3.   You'll have no hit to your credit score if you pay collection within _______months.

         a.  2
         b.  4
          c.  6

4.  True or False, paying credit card balances in full and closing the account hurts your credit score. 

          a.  True
           b.  False

5.   True or False, having zero balance on a credit card hurts your score.

         a.  True
          b.  False

Answers:
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 protected].