EPF Final Exam 25

Front

Which type of lender typically charges the highest interest rates? Options: Credit unions, Traditional banks, Payday lenders, Mortgage brokers

Back

Payday lenders

Front

What is the primary difference between a credit card and a debit card?

Back

Credit cards borrow money from the issuer.

Front

How long does negative information typically remain on a credit report?

Back

7 years

Front

Under the Truth in Lending Act, credit card companies must provide how many days' notice before changing terms?

Back

60 days

Front

Which factor has the biggest impact on your credit score? Options: Length of credit history, Payment history, Credit mix, Recent applications

Back

Payment history

Front

What is collateral in the context of loans?

Back

An asset securing the debt

Front

Which type of loan typically doesn't require collateral? Auto loan, Mortgage, Student loan, Home equity loan

Back

Student loan

Front

What is the grace period on a credit card?

Back

Period between statement and due date

Front

Which practice is recommended for responsible credit card use? Options: Making minimum payments only, Paying the full balance monthly, Taking cash advances regularly, Sharing cards with friends

Back

Paying the full balance monthly

Front

What is the primary purpose of the Fair Credit Reporting Act?

Back

To protect consumer privacy