Credit Review

Which of the following is not considered an advantage of using a credit card?

• Credit cards eliminate the need for savings
• Credit cards are useful in emergencies
• Credit cards consolidate your expense tracking
• Credit cards offer protection against fraud

A benefit of comparison shopping for a credit card would be to:

• Know the terms and conditions of various cards
• Avoid hidden costs
• Decrease the cost of borrowing
• All of the above

What is a balance transfer?

• The act of transferring money from one account to another to pay a credit card balance
• The act of withdrawing cash from the ATM using a credit card
• The act of transferring a credit card debt from one credit account to another
• The act of paying a credit card balance with a check

Which is NOT one of the three credit reporting agencies?

• Equifax

• Vanguard

• Experian

• Transunion

What is a safety tip to remember with credit cards?

• Throw away all credit card offers without opening them
• Keep a list of all cards, account numbers, and phone numbers separate from cards
• Leave cards lying around
• Open as many credit card accounts as possible to obtain a credit history

Where do credit reporting agencies acquire information regarding a consumer's credit history?

• Landlords
• Despository Institutions
• Cell phone companies
• All of the above

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

• Current and past addresses
• Employment history
• Bankruptcies & Foreclosures
• Medical Information

A consumer will develop a positive credit history if they:

• Maintain reasonable amounts of unused credit

• Pay phone and utility bills on time

• Avoid opening too many new accounts

• All of the above

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

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

Which of the following statements about payday loans is TRUE?

• The average payday loan amount in the US is $1000

• The typical term for a payday loan is 5 years

• Payday loans do not require a credit check, so they are available to borrowers with bad credit

• Payday loans are easy to repay because the lender takes a small portion of every paycheck until the loan is paid off