11.3 Assignment

How long does a missed payment on a mortgage usually stay on a consumer’s credit report?

• 2 years

• 12 years

• 7 years

• 5 years

Which of these describes information that is found in a person’s credit report?

• The year and make of the car that the person owns.

• The person’s monthly credit card statements.

• The amount of a car loan in the person’s name.

• The person’s medical history.

Which of these situations describes a situation when a person’s credit report is most likely to be used?

• A car dealer is determining whether to give a loan to a customer wanting to buy a car.

• A gym is determining whether to give a customer membership.

• A university is determining whether to accept a student application.

• An appliance store is determining whether to sell a washing machine to a customer paying in cash.

Susan declared bankruptcy. How long will this remain on her credit report?

• 30 years

• 2 to 3 years

• 7 to 10 years

• It will never be included

Which of the following statements about a credit report is NOT true?

• A credit report allows a lender to check a borrower’s track record for repaying debt.

• A credit report allows a lender to see the total amount of debt a borrower has.

• A credit report allows a borrower to become aware of any unauthorized credit card accounts opened in his or her full name.

• A credit report allows a borrower to see a list of all his or her savings and checking accounts.

Kamala wants to improve her credit score. What can she do to improve her score?

• Not reach the credit line on her credit card.

• Miss payments on a loan from the bank.

• Not review and monitor her credit score.

• Buy a new car with high payments.

Which list contains information that is provided on a credit report?

• Number of on-time payments, number of early payments, number of late payments.

• Current annual income, income from previous job, income from first job.

• Number of traffic tickets received, claims made to insurance companies.

• Number of traffic tickets received, claims made to insurance companies.

Ms. Versini applied for a car loan from a bank. Which statement best describes the importance of Ms. Versini’s credit report to the bank?

• The report shows the likelihood that Ms. Versini will pay back the entire loan on time.

• The report shows the highest level of education that Ms. Versini has reached.

• The bank gives higher interest rates to people with higher credit scores.

• The bank gives partial loans to people with strong credit.