HUD HOUSING COUNSELOR CERTIFICATION
PRACTICE 2026 FULL PRACTICE EXAM WITH
VERIFIED SOLUTIONS
◉ Payment History - Indicators of good and bad credit. Answer:
Positive - Timely payment history demonstrates reliability
Negative - Late payment history demonstrates higher risk of future
delinquency
◉ Capacity used - Positive and Negative. Answer: Positive - Low
credit utilization demonstrates good financial management
Negative - High credit card balances demonstrate poor financial
management
◉ Length of Credit History - Positive and Negative. Answer: Positive
- Longer credit history provides more information for lenders, which
means lower risk
Negative - Shorter credit history provides little or no information for
lenders, which means higher risk
,◉ Type of Credit Used - Positive and Negative. Answer: Positive -
Different types of credit show variety. Variety shows lenders that
consumers can manage different types of credit
Negative - Fewer types of credit show limited profile information to
lenders, which means a higher risk
◉ New Credit - Positive and Negative. Answer: Positive - credit
applications can lead to new credit accounts or loans, which can
establish credit over time.
Negative - Too many inquiries or new credit accounts in a short
period of time will raise questions to lenders
◉ Which section of a credit report will contain employer details:
- Consumer Rights
- Account Information
- Personal Information
- Public Records
- Inquiries. Answer: Personal Information
◉ Which section of a credit report will contain information about a
student loan?
,- Personal information
- Public records
- Inquiries
- Consumer rights
- Account information. Answer: Account information
◉ Which section of a credit report will contain court information
such as bankruptcy?
-Public records
-Inquiries
-Personal information
-Consumer rights
-Account information. Answer: Public records
◉ Which section of a credit report will show recent attempts to open
a credit card?
- Personal information
- Public records
- Consumer rights
, - Inquiries
- Account information. Answer: Inquiries
◉ Which section of a credit report will contain information about
how to correct inaccuracies?
- Personal information
- Consumer rights
- Public records
- Inquiries
- Account information. Answer: Consumer Rights
◉ What is a credit score?. Answer: a number assigned to a person
that indicates to lenders their capacity to repay a loan. (credit
worthiness)
◉ FICO score. Answer: Fair Isaac Corporation - scores ranges from
300 - 850
◉ Account History. Answer: The payment history of an account over
a specific period of time, including the number of times the account
was past due or over limit. (35%)
PRACTICE 2026 FULL PRACTICE EXAM WITH
VERIFIED SOLUTIONS
◉ Payment History - Indicators of good and bad credit. Answer:
Positive - Timely payment history demonstrates reliability
Negative - Late payment history demonstrates higher risk of future
delinquency
◉ Capacity used - Positive and Negative. Answer: Positive - Low
credit utilization demonstrates good financial management
Negative - High credit card balances demonstrate poor financial
management
◉ Length of Credit History - Positive and Negative. Answer: Positive
- Longer credit history provides more information for lenders, which
means lower risk
Negative - Shorter credit history provides little or no information for
lenders, which means higher risk
,◉ Type of Credit Used - Positive and Negative. Answer: Positive -
Different types of credit show variety. Variety shows lenders that
consumers can manage different types of credit
Negative - Fewer types of credit show limited profile information to
lenders, which means a higher risk
◉ New Credit - Positive and Negative. Answer: Positive - credit
applications can lead to new credit accounts or loans, which can
establish credit over time.
Negative - Too many inquiries or new credit accounts in a short
period of time will raise questions to lenders
◉ Which section of a credit report will contain employer details:
- Consumer Rights
- Account Information
- Personal Information
- Public Records
- Inquiries. Answer: Personal Information
◉ Which section of a credit report will contain information about a
student loan?
,- Personal information
- Public records
- Inquiries
- Consumer rights
- Account information. Answer: Account information
◉ Which section of a credit report will contain court information
such as bankruptcy?
-Public records
-Inquiries
-Personal information
-Consumer rights
-Account information. Answer: Public records
◉ Which section of a credit report will show recent attempts to open
a credit card?
- Personal information
- Public records
- Consumer rights
, - Inquiries
- Account information. Answer: Inquiries
◉ Which section of a credit report will contain information about
how to correct inaccuracies?
- Personal information
- Consumer rights
- Public records
- Inquiries
- Account information. Answer: Consumer Rights
◉ What is a credit score?. Answer: a number assigned to a person
that indicates to lenders their capacity to repay a loan. (credit
worthiness)
◉ FICO score. Answer: Fair Isaac Corporation - scores ranges from
300 - 850
◉ Account History. Answer: The payment history of an account over
a specific period of time, including the number of times the account
was past due or over limit. (35%)
