Credit and Debt Quiz2

What is a credit bureau?

• A company that provides loans to consumers

• A company that collects and maintains individual credit information

• A company that sells cars to consumers

• A company that offers insurance to consumers

What is a FICO Score?

• A score given by lenders to consumers

• A score calculated using software from Fair Isaac Corporation

• A score indicating the amount of credit a consumer has used

• A score indicating the interest rate charged by lenders

What is a foreclosure?

• A process in which a lender sells the asset used as collateral for the loan

• A process in which a borrower receives something of value from a lender

• A process in which a borrower makes multiple unsuccessful attempts to collect the amount owed by the lender

• A process in which a lender attempts to recover the balance of a loan from a borrower

What is a credit inquiry?

• A request from a creditor to check a debtor’s credit

• A request from a lender to check a borrower’s credit

• A request from a consumer to check a business’s credit

• A request from a business to check a consumer’s credit

What is credit utilization?

• The amount of credit a consumer has used relative to the total amount of credit extended by lenders

• The amount of credit a consumer has used relative to the total amount of credit available

• The amount of credit a consumer has used relative to the total amount of credit requested

• The amount of credit a consumer has used relative to the total amount of credit approved

What is a collections agency?

• An entity used by creditors to recover funds from consumers

• An entity used by businesses to recover funds from creditors

• An entity used by consumers to recover funds from lenders

• An entity used by lenders to recover funds that are past due or accounts that are in default

What is interest rate?

• The amount charged by a borrower to a lender for the repayment of a loan

• The amount charged by a lender to a borrower for the repayment of a loan

• The amount charged by a borrower to a lender for the use of money

• The amount charged by a lender to a borrower for the use of money

What is credit score?

• A number indicating the capacity of a lender to repay a loan

• A number indicating the capacity of a borrower to repay a loan

• A number indicating the capacity of a business to repay a loan

• A number indicating the capacity of a creditor to repay a loan

What is a credit?

• A contractual agreement in which a borrower receives something of value from a creditor

• A contractual agreement in which a lender receives something of value from a borrower

• A contractual agreement in which a borrower receives something of value from a lender

• A contractual agreement in which a lender receives something of value from a creditor

What is a hard inquiry?

• An inquiry initiated by a consumer when applying for credit

• An inquiry initiated by a lender when checking a consumer’s credit

• An inquiry initiated by an employer when checking a consumer’s credit

• An inquiry initiated by an insurance company when checking a consumer’s credit