IXL | Credit reports | 6th grade math

How does each action affect your credit score?

	Increases credit score	Decreases credit score	Has no effect on credit score
Closing the credit card account that you've had the longest
Putting money in your savings account
Using your birthday money to pay down your credit card balance

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question

When would Shane use his credit report? Select true or false for each statement.

	True	False
He would use his credit report to get a better interest rate on his mortgage.
He would use his credit report to pay less income tax.
He would use his credit report to close his savings account at a bank.

solution

Determine whether each statement is true or false.

green checkmark, He would use his credit report to get a better interest rate on his mortgage.

The bank will look at Shane's credit report when he applies for a mortgage. A person with better credit history is a lower risk, so the bank can give a lower interest rate if Shane's report is good.

red X symbol, He would use his credit report to pay less income tax.

Credit reports do not affect income tax. Shane pays the same amount of income tax whether he has a good or bad credit report.

red X symbol, He would use his credit report to close his savings account at a bank.

A savings account is not a type of credit account. Closing an account does not require a bank to look at your credit report.

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