PFL FP Post-Test Mod 3

Select the one statement that is NOT accurate about credit bureaus (also called "credit reporting agencies").

• Credit bureaus normally keep records of your payment history for seven to ten years.

• Credit bureaus also record where you live and where you work

• Credit bureaus are not-for-profit agencies whose main purpose is to serve consumers

• Credit bureaus are in business to make money. They make money by selling information on consumers' credit records and credit ratings to other businesses and individuals, such as landlords or insurance companies.

Which statement is true?

• You can ignore your credit history and your credit score. Ignore it and nothing happens

• You can't ignore your credit history or your credit score, because they impact everything you do.

Which of the following types of companies or individuals will check your credit rating?

• Companies where you want to work

• Your potential landlord at your first apartment.

• The electronics store if you plan to finance your dream stereo.

• All of the above.

A "credit score" is a three-digit number which rates how much businesses like you personally.

• True

• False

Which statement is true?

• Since my credit score is going to impact my freedom, my job, and my goodie collection, I should start thinking about my credit score now.

• Credit scores don't have anything to do with me yet. After my thirtieth birthday. That's when I'll worry about credit scores!

Which of these credit scores represents the best credit rating?

• 400

• 725

• 610

• 750

Only credit bureaus keep records of your payment history, not other companies

• True

• False

Which of these companies normally use your credit to determine the deposit you will to pay to the company?

• The telephone company.

• The apartment rental company.

• The power company.

• All of the above.

Which definition is the correct definition of "risk-based financing"?

• Risk-based financing: If you don't like people, you charge them more

• Risk-based financing: If a company thinks you are less likely to pay as you have agreed to pay, they charge you more.

• Risk-based financing: If you are an older person, they charge you more

• Risk-based financing: Is used when you are from a family of race-car drivers

Which one of the following statements about risk-based financing is FALSE?

• If you are a low risk, you should pay less to borrow money.

• You can ignore risk-based financing.