Homebuyers! Test Your Credit Card "Buy-Q" with Our Quiz!
Do you know how to manage your credit cards best when preparing to buy a home? Test your knowledge --and reach out to our office for personalized guidance!
Question 1: What's the golden rule when it comes to credit card balances while preparing to buy a home?
A) Keep your credit card balances at 0%.
B) Maintain a low credit card balance-to-limit ratio (below 30%).
C) Use your credit cards frequently to build credit faster.
D) Pay only the minimum balance to save money for your future home.
Question 2: How does closing old credit card accounts impact your credit score?
A) It has no effect on your credit score.
B) It boosts your credit score instantly.
C) It can lower your credit score by reducing your available credit.
D) It helps you qualify for a mortgage faster.
Question 3: What's the best strategy for managing credit card payments while saving for a down payment?
A) Make minimum payments to save more money.
B) Pay off your credit cards in full each month to avoid interest.
C) Make occasional payments whenever you can.
D) Ignore credit card payments and save that money until you're ready to buy a home.
Question 4: How often should you check your credit report while preparing to buy a home?
A) Once a year, max.
B) Only if you suspect fraud.
C) Every month.
D) Never. Your credit report has little impact on your home buying process, so there is no need to bother.
Question 5: Why is it important to avoid opening new credit accounts before buying a home?
A) New credit accounts make you more attractive to lenders.
B) It helps diversify your credit mix and improve your score.
C) Opening new credit accounts can temporarily lower your credit score.
D) It speeds up the homebuying process.
1. B) Maintain a low credit card balance-to-limit ratio (below 30%).
2. C) It can lower your credit score by reducing your available credit.
3. B) Pay off your credit cards in full each month to avoid interest.
4. A) Once a year.
5. C) Opening new credit accounts can temporarily lower your credit score.