Do you understand your credit score and finances?

If you want to avoid debt and keep as much of your money in your pocket as possible, it’s important to understand how your credit score is calculated and how credit cards and banks rack up fees.

To help steer you in the right direction, Nerd Wallet created a financial literacy quiz. The quiz tests your knowledge on subjects like credit scores, bank fees and responsible use of credit. Each question has a detailed explanation of the correct answer, plus links to other articles.

Every savvy consumer should be able to answer the questions on the quiz, such as “What’s the best way to improve your credit score while avoiding fees?” And, many consumers who think they are smart about their finances have a lot of misconceptions about how their credit scores are calculated.

For instance, many people think that the major credit bureaus take your income into account. They don’t. Others don’t realize that all those services offering their “free” credit report actually force you to sign up for a service. You then have to cancel that service in order to avoid paying for it in the future. The only source authorized to provide your annual credit report, completely free of charge, under federal law is