Credit and Identity Theft Quiz

What is the first step a consumer should take when they receive a credit or ATM card?

• A) Memorize the card issuer's contact information

• B) Keep the information on the card

• C) Write down the contact information and keep it separate from the card

• D) Share the information with friends and family

What is identity theft, as described in the text?

• A) Stealing someone's physical identity

• B) Committing fraud with permission

• C) Stealing financial information with the intent to commit fraud under another person's identity

• D) Unauthorized use of a credit card

What should a person do if they discover their identity has been stolen?

• A) Ignore it and hope it goes away

• B) Contact the credit bureaus, creditors, and file a police report

• C) Share their experience on social media

• D) Continue using their compromised accounts

Writing down the card issuer's contact information and keeping it separate from the card is recommended to deal with credit card and identity theft.

• True

• False

What is one of the options for consumers who have charged too many purchases and can't afford the monthly payments?

• A) Continue making minimum payments

• B) Declare bankruptcy immediately

• C) Contact creditors to work out a new payment plan

• D) Hire a credit counselor to remove the debt

What does a credit counselor assist consumers with?

• A) Managing their money

• B) Increasing their debt

• C) Ignoring their financial problems

• D) Improving their credit score

What is a consolidation loan, as mentioned in the text?

• A) A loan to start a new business

• B) A loan that increases monthly payments

• C) A loan that combines a consumer's debts into one with lower payments

• D) A loan only available to individuals with excellent credit

What is one downside of declaring bankruptcy, as described in the text?

• A) It immediately improves your credit record

• B) It allows debtors to keep all their assets

• C) It may result in a bad credit record lasting for 10 years

• D) It guarantees full repayment of debts

Which form of bankruptcy allows the debtor to keep more assets and develop a plan to repay the debt on an installment basis?

• A) Chapter 7 bankruptcy

• B) Chapter 13 bankruptcy

• C) Chapter 11 bankruptcy

• D) Chapter 9 bankruptcy

Why should people avoid bankruptcy, according to the text?

• A) It is a quick solution to debt problems

• B) It has no impact on a person's credit record

• C) It can make it difficult to obtain loans and credit for a long time

• D) It allows debtors to keep all their assets without any consequences