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WorksheetsPersonal Finance (Ch 4)
Total questions: 18
Worksheet time: 9mins
Name
Class
Date
1.
Which of the following is NOT one of the 3 Credit Bureaus?
a)
TransUnion
b)
American Express
c)
Experian
d)
Equifax
2.
What is a paycheck "garnishment"?
a)
Court order to allow lender to steal from borrower
b)
Court order to allow lender to call the borrower constantly
c)
Court order to allow lender to take money directly from borrower's account
d)
Court order to allow lender to throw out a loan and let it go
3.
A credit score is used to measure ___________???
a)
Your risk level
b)
Your financial success
c)
Your income level
d)
The amount of money you have
4.
Why do we need a credit score?
a)
To buy a cell phone (plan)
b)
To get satellite TV @ our house
c)
To get insurance on our car/home/boat, etc.
d)
ALL of the above
5.
How might you know your credit has been stolen?
a)
Bank statements aren't showing up on time
b)
Credit report shows loans you are unaware of taking out
c)
Credit card bills are showing up when you didn't buy anything
d)
ALL of the above
6.
If you want a credit card to start building credit, which of the following is your BEST option?
a)
Ask your parents to open a credit card for you and use it for yourself
b)
Go to the mall and apply for every store's credit card to wait to be approved
c)
Save $300-500, place that $$ in a CD, use the CD to get a "secured credit card"
d)
Ask your parents to co-sign for you on a credit card even if they have bad credit
7.
According to our guest speaker (Aaron), what credit score do you need in order to buy a home?
a)
300-500
b)
740+
c)
850+
d)
600-720
8.
It is okay to use a credit card if you pay it off every month... (according to Aaron)
a)
TRUE
b)
FALSE
9.
What is the credit score RANGE?
a)
100 - 1,000
b)
500 - 800
c)
300 - 850
d)
0 - 850
10.
Under the Fair Credit Reporting Act (FCRA), any person or organization may check a person's credit information without having a legitimate need.
a)
TRUE
b)
FALSE
11.
According to Dave, co-signing a loan is a good way to help a friend or relative.
a)
TRUE
b)
FALSE
12.
Which of the following best summarizes how the use of a credit card for purchases instead of cash can change one's spending behavior?
a)
There are NO negative changes in spending behaviors when using a credit card
b)
People will spend MORE when they use CASH than if they use CREDIT CARDS
c)
People tend to spend MORE when they use CREDIT CARDS than if they use CASH
d)
People don't use credit cards anymore
13.
What is the Federal Trade Commission (FTC)??
a)
US agency that regulates and protects the use of CREDIT
b)
US agency that sets interest rates on credit cards and loans
14.
IF you are a victim of identity theft, you are only responsible for paying back half of the debt.
a)
TRUE
b)
FALSE
15.
How long does a Chapter 7 Bankruptcy stay on your credit report?
a)
3 years
b)
7 years
c)
10 years
d)
15 years
16.
When I first start building credit, what is my starting score?
a)
0
b)
300
c)
620
d)
740
17.
CAN you get a mortgage (home loan) WITHOUT credit? If so, HOW? (According to Dave)
a)
NO - you have to have credit
b)
YES - with a steady job & a large down payment
18.
What should you do with your credit card offers that you get in the mail?
a)
Fill them out and send them in to get the credit cards ASAP
b)
THROW AWAY in your trash ASAP!
c)
SHRED them IMMEDIATELY!!
d)
Take them to your work & THROW AWAY!!!
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