Credit and Credit Reports Check in Quiz

When a homeowner takes out a home equity line of credit, that loan can only be used for home repairs and renovations.

• True

• False

Banks and lenders use credit scores to determine...

• The likelihood that someone is able to repay debt

• How successful a person is

• How much collateral someone has available to put up for a loan.

______________ require the borrower to put up collateral for the loan.

• Secured loans

• Revolving credit

• Unsecured loans

Which of the following is part of the formula that determines a person's FICO score?

• The percent of income that they invest in mutual funds.

• Their income level during a one year period

• Their history of payments made to lenders

Which is an example of an appreciating asset?

• A home

• A new car purchased within the last 6 months

• A piece of farming equipment

Once you turn 18, you should regularly check your credit report...

• To keep an eye on your credit score

• For errors or signs of identity fraud

• Only if you have a credit card

Loans that directly help you advance in life, such as student loans, are acceptable debts.

• True

• False

Predatory lenders get their negative reputation from...

• Discreetly selling personal bank information

• Limiting the amount of time a borrower has to use a loan

• Charging high fees for loans and targeting desperate people

A credit score is an indicator of how well someone pays off their debt, not how well they handle money.

• true

• false

When you buy with credit, you typically spend more than you would with case or a debit card.

• True

• False