Managing Credit Personal Finance Review

Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT…

• Reducing spending by canceling some of her streaming subscriptions

• Taking extra shifts at work to increase her income

• Making more than the minimum required payment on her debt

• Applying for another credit card to use in case she runs out of cash paying off her debt

All of the following would show up on a credit report EXCEPT...

• Salary of your current job

• Payment history of your car loan

• Credit card payment history

• Student loan activity

Which of the following individuals or groups would be the LEAST likely to look at your credit score?

• Someone interviewing you for a job

• Credit card companies

• An insurance company reviewing your applicant for auto insurance

• A bank representative who is helping you open a savings account

Which of the following things should you have ready when contacting a credit reporting agency to report an error on your credit report?

• Your preferred payment method to pay for fixing the error

• A list of all of your financial accounts and balances

• An explanation of the mistake and any evidence you have supporting your claim

• References from a non-family member vouching for your creditworthiness

Which of the following could have a NEGATIVE impact on your credit score if done in a short period of time?

• Paying your bills on-time

• Paying down balances on your credit card accounts

• Decreasing your utilization of credit

• Applying for multiple credit cards

Which of these represents a potential consequence of neglecting to pay your federal student loans?

• Wages or tax refunds can be garnished

• Passport revocation

• Driver’s license suspension

• Termination from your job

You're paying your credit card bill and your student loan payment each month, but you're falling behind on your auto loan payment. Which friend's advice could have a NEGATIVE impact on your credit score?

• Joanie says, "Call the auto lender and see if you can negotiate a lower monthly payment or some other deal."

• Debbie says, "Stop making the credit card payment for a few months until you're caught up on the auto loan."

• Angie says, "Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family."

• Betty says, "Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential."

Which of the following statements about credit scores does this bar graph support?

• Credit scores tend to drop as you grow older because you are more likely to miss a payment at some point

• It is more difficult for young people to borrow because they have less payment history for a lender to rely upon

• When young people borrow, they are likely to have lower interest rates because their credit scores are lower

• It is easier for young people to get loans at lower interest rates because they are likely to have never been late with a payment

Frank and Jasmere are each shopping for a new car for themselves. Each will need a $20,000 loan that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?

• Over the five year period, Jasmere and Frank will pay the same amount for the car loan

• Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment

• Jasmere's monthly payment on the loan will be about $100 more than Frank's payment

• Lenders are not allowed to charge people different interest rates based on their credit scores

Review this partial credit report, and then choose the response below that accurately depicts the information on the report.

• The borrower paid a $30 fee in February 2015

• This borrower was never late with any of their credit payments

• This borrower's most recent payment was $30

• This borrower was 30 days late on their May 2015 payment