Personal Finance Review

Before granting you credit, a creditor will check into your past credit performance.

• True

• False

If you hire a credit guard service company, you will be notified whenever anyone accesses your credit file for any reason.

• True

• False

Any negative information that could harm your ability to get credit remains in your credit report for 10 years.

• True

• False

Collateral refers to financial assets you possess that are worth more than your debts.

• True

• False

Some banks allow minors to establish savings accounts with small balances and waive normal fees charged to other depositors.

• True

• False

The two major factors used to evaluate consumers’ creditworthiness are credit history and credit score.

• True

• False

When a bill is paid within 15 days of its due date, this is considered an automatic grace period.

• True

• False

Businesses can make credit inquiries on you without your permission, but usually those inquiries do not count toward your credit score.

• True

• False

The Fair Credit Billing Act prohibits creditors from denying credit to someone based solely on marital status.

• True

• False

Credit reports are issued by

• banks and savings and loans.

• your employer.

• credit bureaus.

• credit unions.