Personal Finance Unit 5

Which of the following is not one of the 5 C's of creditworthiness?

• Character

• Capacity

• Capital

• Conditions

• Cosigner

What is the correct range for credit scores?

• 100-1000

• 200-900

• 300-850

• 300-800

Which of the following is NOT one of the major credit bureaus?

• Credit Karma

• TransUnion

• Experian

• Equifax

True or False a credit card company must mail a bill 21 days before it is due.

• True

• False

How many days notice must a credit company give before raising your APR?

• 21

• 35

• 40

• 45

True or False. You can open a credit card under the age of 21 without a cosigner.

• True

• False

What is a responsible person who signs a loan along with a borrower thereby agreeing to pay the obligation if the borrower fails to do so?

• Creditor

• Borrower

• Cosigner

• Debtor

Which of the following is NOT a disadvantage of using credit?

• Reduction of future income

• Opportunity to buy costly items that may be difficult to afford with cash

• Risk of serious financial consequences

• Temptation to overspend

True or False: Closed-Ended Credit allows the borrower to use a certain amount of money for an indefinite period of time.

• True

• False

What type of loan requires collateral?

• Secured Loan

• Unsecured Loan