U5L2 HW Finance

The percentage of young people (18-24) that have not checked their credit report is __%.

1. Why do lenders look at credit reports?

1. a) To determine the size of your household

2. b) To provide them with details about your savings account

3. c) To decide whether you are a qualified or risky candidate for credit

4. d) To edit your credit score

• a

• b

• c

• d

2. The following options are all included in your credit report trade lines except…

1. a) Amount of money in your checking account

2. b) Payment history

3. c) Current balances on your loans

4. d) When you opened your credit accounts

• a

• b

• c

• d

3. Why should you review your credit report regularly? Choose two correct answers.

1. a) To monitor how different factors are impacting your FICO score

2. b) To increase your credit views, which automatically increases your credit score

3. c) To check your credit report for accuracy

4. d) To open additional loans and lines of credit

• a

• b

• c

• d

When you sign up for phone, TV, or internet service, the provider is likely to check your credit report. Why would they do this even though you’re not borrowing money from them?

Imagine you’re renting an apartment with a friend after high school. Your friend wants to get satellite TV but can’t because they have bad credit due to a history of late payments. They ask if you’ll sign up for it and assure you they’ll take care of the payments. How would you respond?

What does the reading suggest is the best overall free credit report?

• Nerd Wallet

• Credit Karma

• Credit Sesame

• AnnualCreditReport.com

What is the term for this mortgage listed on a credit report?

• 10 years

• 36 years

• 30 years

• 4 years

3. Which statement about Lillie’s mortgage is FALSE?

1. a) She currently owes $360,595

2. b) She started paying this mortgage in November 2012

3. c) She makes more than the monthly minimum payment

4. d) She is on-time with all of her payments

• a

• b

• c

• d

5. What is the credit limit on Lillie’s First USA Bank credit card?

1. a) $1,684

2. b) $2,695

3. c) $5,500

4. d) $8,850

• a

• b

• c

• d