Unit 7: Credit & Credit Cards Check Up

When a person declares bankruptcy that fact will appear on the person's credit report

• for a 3 year period

• until the person repays all debts owed

• for a 10 year period

• until the person is able to receive a new credit card

A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?

• Notify a credit reporting agency in order to avoid a late fee

• File for bankruptcy in order to maintain ones current credit scores

• Notify the credit card companies in order to negotiate a new payment plan

• Contact the IRS in order to avoid paying income tax this year

Alimony & Child Support are examples of

• Nonedischargeable debts

• Exempt Property

• Dischargeable Debts

• Non-exempt Property

Persons with poor credit scores must often pay____________________interest rates.

• high

• low

• moderate

Which of the following is NOT a type of identity theft?

• the misuse of personal information

• the misuse of existing accounts other than credit cards

• the misuse of one or more existing credit cards or credit card account numbers

• all of the above are types of identity

What should you do to avoid identity-theft victimization?

• more carefully monitor their mail, billing cycles, and credit reports

• know who to contact and notify the affected companies and credit reporting agencies more quickly when something wrong is detected

• do not place personal information on the Internet (only on secured sites)

• all of the above

What is meant by an uncollateralized loan?

• A loan not backed by a co-signer who agrees to cover the amount of the loan.

• A personal loan without assets to cover the loan amount.

• A home equity loan.

• A loan taken on a life insurance policy.

A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?

• Notify a credit reporting agency in order to avoid a late fee.

• File for bankruptcy in order to maintain ones current credit score.

• Notify the credit card companies in order to negotiate a new payment plan.

• Contact the Internal Revenue Service in order to avoid paying income tax this year.

To qualify for a Federal Housing Administration (FHA) loan, a person must generally

• have at least a high school diploma.

• have one-quarter of the cost of the home for a down-payment.

• fulfill income guidelines. .

• provide two individuals to co-sign the loan

When a person brings an item to a pawnshop to obtain cash, the transaction is considered

• a collateralized loan.

• a custodial payment.

• an unsecured loan.

• a sales agreement.