1. Ask the credit company to recalculate it in your favor.
   Pay bills before they're due.
2. Open a new bank account.

A common -- but not always easy -- way is to pay your bills before their due date.

1. no time at all
   a few months
2. a number of years

It can happen in a flash. For example, if you don't pay a hefty overdue fine on a library book, a collection agency can end up dunning you for the outstanding fee and, boom, you've lost credit.

1. in the confines of your bank manager's office
   at PTA meetings
2. on radio shows and Web sites

Among many other places that this is discussed, debt-free living is discussed on radio shows and Web sites. Chances are, though, it's not done at PTA meetings or with your bank manager!

1. Credit scores are not worth the paper they're written on.
   The numbers are always an accurate and fair calculation of credit worthiness.
2. The numbers may not be a true reflection of a person's credit worthiness.

According to some studies, the figures may not necessarily be an accurate measure of credit worthiness.

1. as few as 20
   as many as 50
2. as many as 100

It could knock off 100 points out of a maximum of 850.

1. strangely, yes
   thankfully, no
2. no, it actually increases it

Here's the weird rule. If you cancel a credit card in order to reduce your spending, you may be damaging your credit rating. Go figure!

1. They calculate the difference between the two.
   They go according to the ratio between them.
2. They set a low limit and increase your balance.

They go according to the ratio between your credit (which may have a high limit) and your debit (how much you owe).

1. Morgan Stanley
   Fair Isaac Corporation
2. Dow Jones & Company

Fair Isaac Corporation developed all kinds of algorithmic credit models. Hence, a FICO score.

1. old debts
   new debts
2. they affect the score equally

Old debts seem to be less problematic than new ones. And trying to rectify old ones can actually harm your credit worthiness.

1. They would rather bury the past than dig up archives.
   They resent being called. Usually, they call you for things.
2. It appears as recent or new activity.

It appears as recent or new activity. Thus, what was an "old" debt becomes new baggage and damages your credit score.

1. negative
   positive
2. neither, since it has no bearing on your score

Late payments are the ultimate no-no. That's probably the worst you can do to harm your credit score.

1. no-dough-show
   bill bungle
2. charge-off

They call it a charge-off; an ambiguous term, which might also mean that they charge off to the local collection agency and report you.

1. for five years
   for seven years
2. for 10 years

It can be reported only for seven years. That might be good news for some, depending on who you are.

1. You have to pay the debt and your credit limit is significantly lower.
   You don't have to pay the debt any more because the account is kaput.
2. You still have to pay, but you don't have a credit limit.

You still have to pay back every cent, but you don't have a credit limit.

1. a domino effect
   a halo effect
2. a bad effect

It's called a domino effect. It starts with a mere late payment, which causes a hounding from a collection agency, then poor credit history and so on.