Credit Test Review

If you have an amortized loan, your monthly payment will _______________

• never be the same

• sometimes be the same

• always be the same

Amortization is made up of what two parts?

• Interest and payment

• Principal and payment

• Interest and principal

• none of the above

Identify the three credit reporting agencies? (All must be correct)

• TransUnion

• Equifax

• CarFax

• Experian

• American Express

This type of bankruptcy is also known as "straight" or "liquidation" meaning your assets are sold

• Chapter 7

• Chapter 11

• Chapter 12

• Chapter 13

Assets are NOT sold. This is when a person needs to restructure their debt to a repayment plan, they would use:

• Chapter 7

• Chapter 11

• Chapter 12

• Chapter 13

Which item is important to consider when selecting a credit card?

• Annual Percentage Rate (APR)

• Fees

• The look of the credit card

• Both APR and fees

The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.

• it requires collateral.

• the loan takes longer to get.

• it has high interest rates.

• your parents will make sure you pay it back.

Paying only the minimum balance on your credit card can lead to...

• an increase in your credit score

• paying more interest.

• late fees

• All of the above

Something of value that a borrower lets the lender claim if a loan is not repaid.

• Collateral

• Repossession

• Lien

• Principal

A credit rating developed by Fair Isaac & Company in the late 1950s, now widely used by lenders and employers. It consists of numbers ranging from 300 – 850.

• FICO Score

• APR

• Lien

• Principal