Credit Quiz Answers

Here are the answers to our popular credit quiz. The answer to each question is in bold Italic.  To rate your knowledge please use the following table to score your quiz.

Number of Questions Answered Correctly
  • 9-10  Excellent Credit Knowledge
  • 7-8 Fair Credit Knowledge
  • 5-6 Poor Credit Knowledge
  • 1-4 Very Poor Credit Knowledge

1. You want to establish a Credit Rating. To achieve this in the quickest possible time- frame you should:

a) Borrow from family or friends
b) Borrow from Banks, Retailers, etc
c) Start a chequing or savings account
d) Both A & B
e) Don't borrow at all
f) Both B & C
g) None of the above

2. A personal line of credit is:

a) A credit product which allows you to choose exactly how much credit you consume within a pre-approved limit
b) Paid off with specific payment within a specific time frame
c) Very useful for people who constantly write NSF cheques
d) All of the above
e) None of the above

3. An R-9 Credit Rating means:

a) You have a department store credit card that you use on average 9 times a year
b) You have definitely declared bankruptcy
c) You have never declared bankruptcy
d) You have a Retail credit account on which you have not made payments on for a very long time and which has been written off as un-collectable
e) None of the above

4. Traditional sources of credit include:

a) Banks, Credit Unions, Finance Companies
b) Banks, Credit Unions, Finance Companies, Retailers, Oil Companies
c) Banks, Credit Unions, Finance Companies, Retailers, Oil Companies, Utility Companies and Service Providers
d) Banks, Credit Unions, Finance Companies, Retailers, Oil Companies, Utility Companies, Service Providers, and private individuals

5. Debt Service Ratio means:

a) The percentage of your income which is committed to your living expenses
b) The percentage of your income which is committed to your mortgage and utilities
c) The percentage of your income committed to debts
d) The percentage of your income committed to mortgage payments
e) The percentage of your income committee to debts and mortgages

6. Credit grantors use two major items in determining credit worthiness. They are:

a) Age and length of employment
b) Intent to repay and ability to repay
c) Length of time at current address and length of time at current job
d) Intent to repay and no criminal record
e) Age and ability to repay

7. Leases on cars, furniture, or appliances are best described as a credit type which:

a) Has the lowest possible monthly payment
b) Has a specific number of monthly payments along with a balloon payment at the end of the lease agreement
c) Responds to the high cost of cars, furniture and appliances and is always in the customers best interest
d) Both A & C
e) None of the above

8. I can get a copy of my Credit Report through:

a) Trans Union Canada
b) Equifax Canada
c) My Bank or Credit Union
d) My Credit Card companies
e) Both A & B
f) Both B & C
g) None of the above

9. Annual Percentage Rate means:

a) The cost of credit expressed as a percentage
b) The cost of credit expressed in dollars
c) An interest rate that changes periodically

10. To keep good credit, among other things I must:

a) Skip no more than one payment each year
b) Have a realistic budget
c) Pay balances monthly
d) Keep credit limits modest
e) Not miss any payments
f) All except A