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Introducing the Credit Card: Answer Guide

Exercise 5: Is no credit the same as bad credit?

  • 1. Which of these people has bad credit?
    1. A person who just turned 18
    2. A 22 year old who has never missed a payment on anything
    3. A 40 year old who has never had a loan or credit card
    4. Answer: None of the above
  • Explanation: Person A and Person C will have no credit, and Person B will have good credit.
  • 2. True or false: Bad credit is better than no credit.
    1. True
    2. Answer: False

Exercise 6: What do credit cards do for credit scores?

  • 1. What does it take to keep a good credit score with credit cards?
    1. Answer: Making your monthly payments on time
    2. Making most of your payments most of the time
    3. Thinking about making your payments but not actually making them
    4. Never making your credit card payments
  • 2. Will credit cards ever hurt your credit score?
    1. No, just having them makes your credit score go up
    2. Yes, because they are considered as debt
    3. Answer: Yes, but only if you miss a payment
    4. Yes, but only if you have a huge credit card balance

Continue to the next section for the Quick Reference Answer Guide.

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