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Basics Beginner: Establishing Credit for the First Time

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1.
Personal loans from banks or credit unions are _______.
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Secured or unsecured. They may be either, depending on what you qualify for.
2.
If you want to establish credit but haven't yet, potential lenders can make a judgment about your creditworthiness based on other factors.
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True. Lenders can look at your history of paying bills, your employment history, and your housing history.
3.
The largest part of your credit history is _______.
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Payment history. This part accounts for 35% of your credit history.
4.
If you have accounts with a financial institution such as a bank or credit union, it can be advantageous to apply for your first credit card there.
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True. The institution will have a sense of how you handle money.
5.
A secured credit card is one that is backed by some asset.
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True. The asset protects the lender if you default on your payments.