Credit Unit Alt Test

Which of the following is an open-end credit?

• Car loan

• Retail store charge cards

• Mortgage

• Student Loan

What should you do if you can't make a payment on your credit card?

• Contact the Internal Revenue Service to avoid paying income taxes

• File for bankruptcy to maintain your current credit score

• Notify the credit card company to negotiate a new payment plan.

• Notify a credit reporting agency to avoid a late fee

How long will a bankruptcy stay on your credit report?

• 3 years

• 7 years

• 10 years

• 15 years

An uncollateralized loan is

• 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 loan taken on a life insurance policy

• A home equity loan

The Equal Credit Opportunity Act:

• Allows credit to be denied even if the applicant has a good credit history

• Allows credit to be denied based on the applicant's cultural background

• Stipulates that credit must be available to any U.S. citizen

• Makes it illegal for creditors to grant credit on any characteristics other than those that reflect creditworthiness

What is the maximum amount you are liable for if your credit card is stolen?

• $0.00

• $25.00

• $50.00

• The full amount

Which factor would most likely lead to an increase of interest rate on a person's credit card and a drop in their credit score?

• Number of cash advances

• Number of purchases

• Total amount charged

• Late payments

If something is wrong on my credit report I should contact...

• The issuing creditor

• The credit bureau and issuing creditor

• The credit bureau

Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition of:

• Taxation

• Investing

• Interest

• Credit

When a borrower fails to repay a loan and there is a co-signer on the loan, the most likely result will be

• Only the co-signer’s credit report will show that there has been a default on the loan

• The co-signer will be held responsible for the repayment of the entire loan plus fees or penalties

• The co-signer will be held responsible for one-half the repayment of the loan

• The co-signer has the opportunity to renegotiate the loan