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Quizzes > Business & Finance

Credit Score Myths Quiz: What Is Not True?

Quick, free quiz to test your knowledge of credit myths and facts. Instant results.

Editorial: Review CompletedCreated By: Jennifer PetersUpdated Aug 24, 2025
Difficulty: Moderate
Grade: Grade 11
Study OutcomesCheat Sheet
Colorful paper art promoting a trivia quiz on debunking credit score myths for students.

This credit score myths quiz helps you spot what is not true of credit scores and what actually matters. In 20 short questions, you will see how choices like on-time payments and balances affect your score. For more practice, check out our credit and borrowing quiz, explore a credit card myths quiz, or test yourself with a variable rate loan quiz.

Which of the following does NOT affect your credit score?
Payment History
Length of Credit History
Credit Utilization
Income Level
Credit scores are derived from factors such as payment history, credit utilization, length of credit history, types of credit, and recent inquiries. Income level is not considered when calculating your credit score.
Which of the following statements is a credit score myth?
Regularly checking your own credit report lowers your score.
High credit utilization can lower your score.
Paying bills on time builds your credit score.
A longer credit history improves your score.
Many people mistakenly believe that checking their own credit report harms their score; however, self-checks are considered soft inquiries and do not affect the score. The other statements accurately describe factors that influence credit scores.
Which factor is commonly mistaken as directly influencing credit scores, but actually does not?
Credit Mix
Payment History
New Credit Applications
Job Title
Credit scoring models focus on behavior such as payment history, amounts owed, and credit inquiries, rather than personal details like job title. Understanding this can help debunk the myth that your occupation influences your score.
What is a common myth about managing credit cards?
Mixing credit types can benefit your score.
Maintaining a low balance relative to your limit helps your score.
Closing your unused credit card will improve your score.
Paying bills on time helps your score.
A common misunderstanding is that closing unused credit cards will improve your credit score. In reality, keeping these accounts open can help maintain a longer credit history and lower your overall credit utilization.
Which of the following misconceptions is false regarding credit inquiries?
Soft inquiries do not affect your credit score.
Hard inquiries only minorly affect your credit score.
Soft inquiries significantly lower your credit score.
Hard inquiries can affect your credit score.
Soft inquiries, such as checking your own credit report, do not harm your credit score. Only hard inquiries, which occur when you apply for new credit, can have an impact - even if it is typically small and temporary.
Which of the following factors is NOT a component of a FICO credit score calculation?
Payment History
Amount Owed
Income Bracket
Length of Credit History
FICO scores are calculated based on payment history, amounts owed, length of credit history, new credit, and credit mix. Income bracket is not one of the factors in these scoring models.
When building credit, which strategy is typically misunderstood?
Monitoring your credit report.
Using a variety of credit types.
Carrying a balance on your credit cards.
Making on-time payments.
A common myth is that you need to carry a balance on your credit cards to build credit. In truth, timely payments and responsible credit usage are the keys to establishing a strong credit history without incurring unnecessary interest.
Which of the following statements about checking personal credit reports is true?
Checking your report frequently will damage your credit.
Monitoring your credit report regularly does not hurt your score.
Requesting your own credit report causes a hard inquiry.
Only lenders are able to check your credit report.
Monitoring your own credit report is classified as a soft inquiry, which does not negatively impact your score. This practice is beneficial for managing your credit and catching any errors early.
Which of the following actions is a misconception when trying to improve your credit score?
Making on-time payments.
Paying off balances in full.
Requesting a rapid increase in your credit limit.
Keeping credit card balances low.
While increasing your credit limit can lower your utilization ratio, rapidly requesting increases may result in multiple hard inquiries. This can temporarily lower your credit score, making the strategy counterproductive.
What impact do multiple hard inquiries in a short time frame have on your credit score?
They can lower your credit score.
They boost your credit score.
They have no impact at all.
They permanently ruin your credit score.
Multiple hard inquiries can suggest that you are seeking a lot of new credit and may lower your score temporarily. However, while the impact can be negative, it is generally small and short-lived.
Which factor is incorrectly assumed to affect credit scores?
Length of Credit History
Payment History
New Credit Inquiries
Annual Salary
Credit scoring models do not take into account annual salary when calculating your score. Instead, they assess factors related to your credit behavior such as payment habits and debt levels.
Why is it a misconception to think that carrying a balance on your credit cards builds credit?
Because it diversifies your credit mix.
Because carrying a balance always increases interest costs without improving credit.
Because it forces better money management.
Because it leads to fewer credit inquiries.
Building a strong credit history is more about making on-time payments and keeping your credit utilization low than about maintaining a balance. Carrying a balance results in higher interest costs and does not provide any inherent credit-building benefit.
Which scenario reflects a common myth about credit score improvement?
Diversifying types of credit used.
Regularly paying more than the minimum due.
Closing old credit accounts to avoid fees.
Keeping credit card balances low.
Many believe that closing old credit accounts will eliminate fees and improve credit, but this action can shorten the length of your credit history and raise your overall credit utilization ratio. Maintaining old accounts in good standing is generally more beneficial for your score.
Which of the following best defines 'credit mix' in credit scoring?
A variety of different credit types, such as credit cards, loans, and mortgages.
The ratio of credit card balances to credit limits.
The combination of credit inquiries and payment history.
The total amount of credit available to a borrower.
Credit mix refers to having a diverse set of credit accounts, including revolving credit (like credit cards) and installment loans (like auto or mortgage loans). This variety can positively influence your credit score by showing that you can manage different types of credit responsibly.
Which of the following statements about account age is a myth?
Older accounts contribute positively to your score.
Only open accounts count toward the age of your credit history.
Closed accounts in good standing remain on your report and contribute to credit history length.
The overall length of credit history is an important factor in your score.
In most credit scoring models, both open and properly closed accounts are considered when assessing the length of your credit history. Believing that only open accounts count is a misconception that can lead to poor credit management decisions.
A borrower believes that applying for several new credit cards simultaneously will improve his credit score by increasing the total available credit. Which aspect of credit scoring does this belief misunderstand?
Importance of payment history.
Significance of credit mix.
Effect of credit inquiries on credit score.
Impact of credit utilization ratio.
Applying for several new credit cards at once results in multiple hard inquiries, which can temporarily lower your credit score. While increased available credit may lower your utilization ratio, the negative effect of these inquiries often outweighs that benefit.
Sam believes that transferring most of his savings to a credit card account and then paying it off immediately will help build his credit history faster. What misconception does this scenario illustrate?
That better credit limits result from higher account activity.
The difference between secured and unsecured credit.
That a higher transaction volume boosts credit history length.
The requirement to carry a balance for credit score improvement.
This scenario reflects the myth that you need to carry a balance on your credit cards in order to build credit. In reality, paying off your balance in full every month is the most effective way to build a strong credit history without incurring unnecessary interest.
Which of the following statements about the impact of student loans on credit scores is a misconception?
Having multiple student loans will permanently lower your credit score.
Defaulting on student loans severely damages your credit history.
Student loans are considered when calculating your credit utilization ratio.
Timely repayment of student loans can build credit.
It is a misconception that simply having multiple student loans will permanently lower your credit score. Instead, it is your repayment behavior that matters - timely repayments can actually help in building a positive credit history.
Why is it a misconception to assume that your credit score is solely determined by your spending habits?
Because the score is only determined by income level.
Because credit scores also consider payment history and debt management.
Because spending habits directly affect interest rates.
Because credit scores are controlled by financial institutions irrespective of spending.
Credit scores incorporate various factors including payment history, amounts owed, length of credit history, credit mix, and new credit inquiries. Focusing solely on spending habits ignores these other critical components that determine your score.
Maria believes that negative marks on her credit report, like a late payment, will vanish immediately after she resolves the issue. What credit scoring misconception does this belief represent?
Negative marks are immediately corrected once paid off.
Late payments permanently damage your score.
Credit scores are unaffected by negative marks.
Resolution of negative marks is dependent on reporting cycles.
A common myth is that once you pay a late bill, the negative mark will immediately disappear from your credit report. In reality, negative items can remain on your record for up to seven years, although their impact may decrease over time.
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Study Outcomes

  1. Analyze common myths about credit scores.
  2. Identify factors that do not influence credit scores.
  3. Evaluate the accuracy of popular credit score misconceptions.
  4. Apply foundational credit score knowledge to exam scenarios.
  5. Compare factual information with misleading beliefs in personal finance.

Credit Score Quiz: What Doesn't Count? Cheat Sheet

  1. Income Doesn't Directly Impact Your Score - Your earnings aren't part of the credit scoring formula; it's all about your repayment history and credit utilization. Stay on top of bills, and you'll build strong credit regardless of paychecks.
  2. Soft Inquiries Are Harmless - Checking your own credit score generates a soft inquiry, which won't ding your report. Regular self‑checks help you spot errors and keep financial surprises to a minimum.
  3. Carry No Balance for Better Scores - Carrying debt month‑to‑month doesn't boost your score; it actually hurts it. Paying in full each cycle keeps utilization low and saves you from interest charges.
  4. Old Accounts Protect Your History - Closing longtime credit cards can shrink your available credit and shorten your credit age, both of which may lower your score. Keep accounts open if they're fee‑free.
  5. Personal Traits Don't Count - Age, race, gender or marital status have zero impact on your score - credit bureaus only look at numbers like payments and balances. It's all about responsible borrowing.
  6. You've Got Multiple Scores - Different bureaus and lenders use various scoring models, so your score can vary. Focus on overall trends, not a single snapshot.
  7. Co‑Signing Carries Risk - If you co‑sign a loan, you share full responsibility. Missed payments by the primary borrower will also ding your credit history.
  8. Paid Debts Stay on File - Even after you clear a collection, it can linger on your report for up to seven years. Its effect weakens over time, though, so keep paying on time.
  9. Avoid Multiple Hard Inquiries - Each new card or loan application can trigger a hard inquiry, which may shave points off your score. Space out credit requests to minimize impact.
  10. Your Score Can Change Daily - Credit scores aren't set in stone. By paying on time, keeping balances low, and avoiding unnecessary inquiries, you can watch your score climb.
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