6.01 & 6.02: Credit Reports And Scores / Credit Basics

Front

Edward wants to develop a positive credit history. How should he do this? Options: Maintain reasonable amounts of available credit, Have one type of credit account, Pay cash for the majority of purchases, Open credit accounts in his parents’ names

Back

Maintain reasonable amounts of available credit

Front

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which best describes what this is likely to mean for Bryce?

Back

The interest rates on his loan will be higher, since his credit score is low.

Front

Jake’s credit application has been declined because of his negative credit history. Which is most likely to be true? Jake pays his bills consistently and on time. Jake has applied for 4 credit cards and a car loan in the past 6 weeks. Jake has received 3 traffic tickets in the past 2 months. Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.

Back

Jake has applied for 4 credit cards and a car loan in the past 6 weeks.

Front

Which one of these does NOT require a credit report history? Landlord, Credit card company, Utility company, Medical provider

Back

Medical provider

Front

Which is not included in an individual’s credit report? Current and past addresses, Account balances, Bankruptcies and foreclosures, Medical information

Back

Medical information

Front

When may a person view his/her credit report for free?

Back

Once a year, from each of the three main credit reporting agencies

Front

Becky no longer wants to use her Clothes-R-Us store credit card. What is the best thing she could do with the credit card?

Back

Close the account by phone and in writing, then destroy the card.

Front

What should be recommended for Jenny, who is 18 years old and has applied for credit for the first time but was declined due to no credit history?

Back

Jenny should obtain a secured credit card.

Front

David earns $5,000 per month at his accounting job. He has a student loan payment of $120, a car loan of $300. Which statement is true?

Back

David’s credit payments are within the safe range for someone with his income.

Front

Leah is trying to explain the difference between open-end and closed-end credit to her roommate. Which should she include in her description of closed-end credit?

Back

Equal payments are required on a regular basis until the loan is repaid.