Quiz | February 2011
The Truth About Credit & Debt
Like it or not, credit and debt make our world go round. Take our ten-question quiz to find out how much you know about the consumer side of credit, and how it impacts your pocketbook.
Quiz
The Truth About Credit & Debt
Question 1 of 10
How deep are U.S. consumers in debt?(Hint: It's more than you might think.)
A. $97 billion
B. $1.2 trillion
C. $2.4 trillion
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Quiz
The Truth About Credit & Debt
Question 1 of 10
How deep are U.S. consumers in debt?(Hint: It's more than you might think.)
You're right! C. $2.4 trillion is correct.
Sorry, wrong!
is incorrect.
The right answer is C. $2.4 trillion.
According to the Federal Reserve, total consumer credit outstanding as of November 2010 is $2.4 trillion, down 6.1% from 2008. Of the total, about $796.5 billion was from revolving credit and about $1.6 trillion was from non-revolving credit.
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Quiz
The Truth About Credit & Debt
Question 2 of 10
The minimum credit score needed to get the lowest interest rate on a 30-year fixed-rate mortgage is:
A. 850
B. 760
C. 660
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Quiz
The Truth About Credit & Debt
Question 2 of 10
The minimum credit score needed to get the lowest interest rate on a 30-year fixed-rate mortgage is:
You're right! B. 760 is correct.
Sorry, wrong!
is incorrect.
The right answer is B. 760.
If you have a FICO score of 760 or higher you qualify for the best rates, according to Fair Isaac, the company that created the FICO credit score. In 2007, before the credit crisis, a score of 720 could snag the best rates.
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Quiz
The Truth About Credit & Debt
Question 3 of 10
You have no recourse if your credit card company announces a unilateral rate increase.
A. True
B. False
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Quiz
The Truth About Credit & Debt
Question 3 of 10
You have no recourse if your credit card company announces a unilateral rate increase.
You're right! B. False is correct.
Sorry, wrong!
is incorrect.
The right answer is B. False.
The CARD Act of 2009 requires that credit card issuers notify card holders 45 days in advance of any increase in interest rates. Consumers can cancel the card and pay off the balance at the current interest rate or transfer it to another card.
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Quiz
The Truth About Credit & Debt
Question 4 of 10
What percent of credit card holders carry a balance of more than $10,000?
A. 15%
B. 45%
C. 75%
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Quiz
The Truth About Credit & Debt
Question 4 of 10
What percent of credit card holders carry a balance of more than $10,000?
You're right! A. 15% is correct.
Sorry, wrong!
is incorrect.
The right answer is A. 15%.
About 15% of credit card holders are far less conservative in their use of credit cards and have total card balances of more than $10,000. However, 40% of credit card holders have balances that are less than $1,000.
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Quiz
The Truth About Credit & Debt
Question 5 of 10
Most bankruptcies in the U.S. are caused by high levels of credit card debt.
A. True
B. False
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Quiz
The Truth About Credit & Debt
Question 5 of 10
Most bankruptcies in the U.S. are caused by high levels of credit card debt.
You're right! B. False is correct.
Sorry, wrong!
is incorrect.
The right answer is B. False.
The three principal reasons for filing for bankruptcy are medical problems, divorce and job loss. Bankruptcy filings in 2010 jumped 9% over the previous year to more than 1.5 million. Consumers use credit cards to help bridge the financial gap caused by such events.
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Quiz
The Truth About Credit & Debt
Question 6 of 10
The median FICO credit score in the U.S. is currently:
A. 680
B. 711
C. 800
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The Truth About Credit & Debt
Question 6 of 10
The median FICO credit score in the U.S. is currently:
You're right! B. 711 is correct.
Sorry, wrong!
is incorrect.
The right answer is B. 711.
FICO scores range from 300 to about 850 -- the higher the score the better the interest rate. Scores have drifted down slightly since 2008. Fewer consumers have scores in the 800 to 850 range today than in 2008.
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The Truth About Credit & Debt
Question 7 of 10
A credit score of 660 or lower is considered a "subprime" score. What percent of consumers have a credit score in the 600s?
A. 3%
B. 35%
C. 52%
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Quiz
The Truth About Credit & Debt
Question 7 of 10
A credit score of 660 or lower is considered a "subprime" score. What percent of consumers have a credit score in the 600s?
You're right! B. 35% is correct.
Sorry, wrong!
is incorrect.
The right answer is B. 35%.
About 35% of consumers have scores of 650 or lower. In the upper tiers, about 35% of us score in the 700s, and 18% have credit scores of 800 or higher.
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Quiz
The Truth About Credit & Debt
Question 8 of 10
Being in debt does not hurt your credit score as long you pay your bills on time.
A. True
B. False
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Quiz
The Truth About Credit & Debt
Question 8 of 10
Being in debt does not hurt your credit score as long you pay your bills on time.
You're right! B. False is correct.
Sorry, wrong!
is incorrect.
The right answer is B. False.
Although paying your bills on time is important, it accounts for only 35% of your FICO credit score. Lenders also look at the amount of debt you owe (30% of your score). They also care about the length of your credit history (15%), how much new credit you're seeking (10%) and types of credit you use (10%).
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Quiz
The Truth About Credit & Debt
Question 9 of 10
What percent of college students have a credit card (and are not merely an authorized user on someone else's card)?
A. 10%
B. 43%
C. 99% -- How else do they pay for those pizza runs?
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The Truth About Credit & Debt
Question 9 of 10
What percent of college students have a credit card (and are not merely an authorized user on someone else's card)?
You're right! B. 43% is correct.
Sorry, wrong!
is incorrect.
The right answer is B. 43%.
Nearly half -- 43% -- have their own card. The percent jumps to 59% if you include those who are authorized users on someone else's card. Of those who carry a balance, the average amount is $513 according to the Student Monitor.
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Quiz
The Truth About Credit & Debt
Question 10 of 10
On average, today's consumer has a total of ___ credit obligations on record at a credit bureau.
A. 5
B. 13
C. 19
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The Truth About Credit & Debt
Question 10 of 10
On average, today's consumer has a total of ___ credit obligations on record at a credit bureau.
You're right! B. 13 is correct.
Sorry, wrong!
is incorrect.
The right answer is B. 13.
Of these 13 credit obligations, nine are likely to be credit cards, and four are likely to be installment loans, such as auto, mortgage and student loans.
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Quiz
The Truth About Credit & Debt
Results: 0 out of 10 Right
See Also
More Fun Money Quizzes
Win Rewards for Paying off Debt
What is the Score on Your Credit?
Will a Cash-Back Card Make You Spend More?
What Kind of Spender Are You?
When One Spouse's Credit Score Is Lower
Financial Truth or Bunk? Round I
FAQs on the New Credit-Card Rules
Financial Truth or Bunk? Round II
How Safe is Your Money?
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