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Lakewood, Colorado - can you pass the credit score quiz?

A new quiz put out by the Consumer Federation of America allows consumers to check their knowledge of what goes into and affects your individual credit score. It is rather thorough and a great tool for Lakewood, Colorado, parents to use in teaching their high school grads about finances and credit. Teenagers might not want to take yet another quiz as graduation looms, but this one could be a lifelong lesson in managing their personal credit score from the beginning, before the credit card companies' start offering your kids instant access to untold funds when they get to college.

Even many adults may not know certain things about what affects their credit score, what lowers your score or improves it and why can be a good lesson for anyone struggling with financial difficulties or working to improve their credit score after filing for personal bankruptcy. Credit costs money, and with a good credit score it costs a lot less.

Many people who have taken the quiz already know some of the basics, such as when your credit score is used to make certain loan decisions, but did you know it is also used when you purchase homeowners or car insurance or when you sign up for a cell phone plan?

Ten percent of the people who have already taken the quiz didn't know that student loans are counted towards your credit score. And learning how much more a person with poor credit will pay in interest for a loan can be a shocker for many consumers. A low credit score can cost more than $5,000 on a $20,000 loan, that's huge, and ultimately why your credit score matters. The quiz debunks many of the myths surrounding credit scoring, including how often so-called credit repair companies actually repair someone's credit, which is not as often as they claim. Another good reason to learn what affects your credit so you can work on improving it on your own.

One major obstacle so many Colorado residents are faced with in today's tough economic environment, is how to overcome mounting debt to get to place you can actually see a light at the end of the tunnel. For many, personal bankruptcy such as a Chapter 7 or Chapter 13 offer debt relief in the form of discharging debt or restructuring your debt into manageable payment amounts. Consult with a bankruptcy attorney in your area to learn what options are available to you so you can start repairing your financial health today.

Source: ABC News, "How Will You Score On Credit Score Quiz?," Elisabeth Leamy, May 21, 2012

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