Personal Finance Obj. 6.01

Which is not an example of a data finisher

• Medical provider
• Landlord
• Credit card company
• Utility company

Edward wants to develop a positive credit history.  How should he do this?

• maintain reasonable amounts of available credit
• Open credit accounts in his parents' names
• Have one type of credit account
• Pay cash for the majority of purchases

Becky no longer wants to use her Belks' store credit card. What is the best thing she could do with the credit card?

• File the credit card away for use at a later time
• Let a family member take over the credit account so her credit score will not be affected
• Close the account by phone and in writing, then destroy the card
• Keep the credit card in her wallet in case she needs proof of identification.

Which of the following is NOT included in an individual's credit report?

• Bankruptcies and foreclosures
• Account balances
• Medical information
• Current and past addresses

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

• If a person has suffficient financial resources
• A person may not review his/her credit report
• At any time and an unlimited number of times
• Once a year, from each of the three main credit reporting agencies

Robert's credit application has been declined because of his negative credit history.  Which statement is most likely to be true?

• Robert holds 2 store credit cards, a bank credit card, a car loan and a mortgage
• Robert has applied for 4 credit cards and a car loan in the past 6-weeks
• Robert has received 3 traffic tickets in the past 2 months
• Robert pays his bills consistently and on time

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

• The interest rate on his loan will be lower, since his credit score is low
• The purchase price of the item he needs the loan for will be higher due to his low credit score
• The monthly loan payments will be lower due to his lower credit score
• The interest rates on his loan will be higher, since his credit score is low

Khalaja is 18 years-old and has applied for credit for the first time.  Her credit application was declined because she has no credit history. What would you recommend Khalaja to do to begin to build a positive credit history?

• Khalaja should re-apply for the same credit but include a letter of recommendation from someone who knows her well and can vouch for her character
• Khalaja should apply for a different type of credit .  Since she was applying for a bank loan, she should apply for a credit card.
• Khalaja should obtain a secured credit card.
• Khalaja should acquire several credit cards to establish that she can manage them responsibly.

What is a credit score?

• Your social security number
• Your age and your birth year
• Your license tag number
• a numerical summary of your credit history

Does a consumer have one or multiple scores?

• multiple
• One
• negative
• positive