Credit Profile basic

When a consumer makes a purchase using credit, the lender pays the merchant at the time of purchase, and collects payment from the consumer at a later time.

• True

• False

The interest rate is a percentage of debt a consumer must pay the lender as a fee, in addition to the original debt amount.

• True

• False

Which of these are primary credit bureaus that collect and store credit information? More than one answer may be correct.

• a) TransUnion

• b) Experian

• c) Equifax

• d) CreditChex

Which of the following are credit purchases? More than one answer may be correct.

• a) Clothes bought using a debit card

• b) Land bought with the help of a land loan

• c) Vehicle bought through an auto loan

• d) All of the above

Less frequent credit card payments may lead to lower interest rates.

• True

• False

Which of the following individuals would likely be charged a higher interest rate on a credit card? More than one answer may be correct.

• a) Garrett lost his job last year and his car was repossessed a month ago.

• b) Nancy, a small business owner, is behind 30 days or more on payments to vendors.

• c) Lashonda makes $35,000 a year and has a history of paying all her bills on time.

• e) Belinda and Lee purchased a $500,000 home 3 years ago and now are facing foreclosure.

Lady’s credit history suffered the past year because she lost her job due to a physical disability. She maxed out her credit card to pay for her living expenses. Which of the following can help her rebuild her credit score? More than one answer may be correct.

• a) Start paying off her credit card debt.

• b) Secure a job that will allow her to work despite the disability.

• c) She should do nothing and hope her credit score increase.

• d) Move back in with her parents until she can get back on her feet