Credit Score Mastery: Prove Your Expertise

Question 1

VantageScore was created by which group of organizations?

Accepted Answer

All three major credit bureaus — Equifax, Experian, and TransUnion — jointly

Answer

The American Bankers Association

Answer

FICO and the Consumer Financial Protection Bureau

Answer

The Federal Reserve and Treasury Department

Question 2

What is the most significant practical difference between FICO 9 and FICO 8 in terms of credit scoring?

Accepted Answer

FICO 9 ignores paid collection accounts and gives less weight to unpaid medical collections

Answer

FICO 9 requires a minimum of 3 accounts while FICO 8 requires only 1

Answer

FICO 9 counts rental history automatically while FICO 8 does not

Answer

FICO 9 weighs credit utilization more heavily than FICO 8

Question 3

FICO 10 T (Trending) is distinct from standard FICO 10 because it does what?

Accepted Answer

It analyzes 24 months of balance history to reward consumers who are paying down debt over time

Answer

It exclusively scores consumers who have no collections on file

Answer

It combines data from all three bureaus into one merged score

Answer

It uses tax return data to verify income before calculating a score

Question 4

When you are added as an authorized user on someone else's credit card, how does it typically affect your credit profile?

Accepted Answer

The account's full history — including age, credit limit, and payment record — can appear on your credit report and influence your score

Answer

Only the credit limit is added to your report, not the payment history

Answer

It creates a hard inquiry on your credit file that lasts two years

Answer

It has no effect because authorized users are not legally responsible for the debt

Question 5

What is the key difference between a credit freeze and a fraud alert?

Accepted Answer

A credit freeze blocks lenders from accessing your credit report to open new accounts, while a fraud alert simply signals lenders to take extra verification steps before approving credit

Answer

A freeze only applies to one bureau, while a fraud alert is automatically applied to all three

Answer

A fraud alert permanently blocks all new credit, while a freeze only lasts 90 days

Answer

Both are identical in effect but a freeze costs money while a fraud alert is free

Credit Score Mastery: Prove Your Expertise

What You Will Learn