Credit scoring is that mysterious number that is assigned to your when you apply for a mortgage, a car loan and your insurance company even runs one to determine your premium amounts.
So, there’s a new website, created by the Consumer Federation of America and Vantage Score Solutions if you’d like to know how credit scoring works.
Thousands of people have taken the quiz—with the average score of 60%. People between the ages of 34 to 45 got 67% right and people with income over $100,000 got 66% correct answers. Consumer with lower income and the elderly scored lower. They just don’t use credit enough to know how the scores affect them.
The quiz has 25 questions—and the website will give you the answer to those questions that you missed.
Credit scoring disclosure rules went into effect in July 2011, lenders and the credit bureau must provide you with detailed information when you apply for credit. It will help you understand your credit score and in finding errors on your report (that you may not even know about).