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Test your Credit IQ with this little quiz

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March is National Credit Education Month

March 6, 2019

We all know it's important to have good credit scores, but there's a lot of confusion about how they work and what can hurt them.

March is National Credit Education Month, so here's a little credit quiz for you to take. The answers are provided by Liz Weston, a personal finance columnist at NerdWallet.

Question 1: Your income effects your credit score. (True or False?)

"False. Your income does not affect your credit score. It's not something that's factored in," Weston said. "What is factored in is how you have and use credit."

Question 2: Carrying a balance on your credit cards helps you build a good credit history? (True or False?)

"False. It's not true, in fact, it's a big myth, that carrying debt is necessary to have good scores," Weston said. "As a matter of fact, you can and should be paying off your balances on your cards in full every month."

Question 3: Checking your credit score will hurt that score. (True or False?)

"False again. When you check your own credit it doesn't hurt your credit score. What hurts your credit score a little bit is if you apply for credit. That can affect your score, usually by only a few points," Weston explained. "But looking at your own credit, your own credit score, that's not going to affect you."

More Info: What Doesn't Affect Your Credit Score

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