The Basics of Building Credit

Exercise 3

Choose the best answer.

• 1. Which of the following probably has the highest credit score? Assume that all of them have made regular monthly payments on time.
  1. An 18 year old college freshman
  2. A 20 year old waitress with two active credit cards
  3. A 40 year old business owner with two cars, a house, and four active credit cards
  4. A 50 year old with five credit cards who rents his house.

• 2. What makes a person a good cosigner?
  1. A high credit score
  2. A steady income
  3. The ability to pay for your loan if you can’t
  4. All of the above