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WorksheetsQuiz 5
Total questions: 10
Worksheet time: 5mins
Jake’s credit application has been declined because of his negative credit history. Which is most likely to be true?
Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.
Jake has received 3 traffic tickets in the past 2 months.
Jake has applied for 4 credit cards and a car loan in the past 6 weeks.
Jake pays his bills consistently and on time.
When may a person view his/her credit report for free?
When a person has sufficient financial resources
A person may not review his/her credit report
Once a year, from each of the three main credit reporting agencies
At any time and an unlimited number of times
Which is not an example of a data furnisher?
LandLord
Credit card company
Utility company
Medical provider
Paying the minimum payment on a credit card every month will:
make the final amount paid substantially higher than the amount initially charged to the card.
allow the cardholder to avoid paying any interest charges.
help the cardholder create a plan for paying off a credit card in a decent amount of time.
pay a large percentage of the total balance owed every month.
Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?
Sarah cannot obtain a credit card until she turns 21.
Sarah can obtain a credit card by filling out an application as long as she waits until after her 18th birthday.
Sarah can only obtain a credit card if she has a co‐signer or proof of sufficient income to make the required payments.
Sarah will need to use a special application since she is under 25.
Which is a general rule when dealing with credit reports to minimize identity theft?
Report mistakes to only one credit reporting agency and they will inform the others
Keep credit reports in an easily accessible location, so information can be accessed if fraud occurs
Wait 60 days before disputing any wrong information found in a credit report or on a credit card statement
Check each credit report at least once per year
Which action will not make an individual vulnerable to identity theft?
Throwing mail in the garbage
Paying cash for a movie ticket
Responding to an email from one’s depository institution
Using a computer without updated spyware protection
Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?
Using credit cards for all her purchases so she only needs to pay one bill each month
Giving account numbers over the Internet rather than over the phone
Signing the back of her card with her signature and “Please see picture ID”
Carrying all credit cards in her wallet so they do not get lost
David earns $5,000 per month at his accounting job. He has a student loan payment of $120, a car loan of $300. Which statement is true?
David’s credit payments are within the safe range for someone with his income
David’s student loan payment must be subtracted from his car loan payment to determine whether his overall credit payments are within the safe range
David’s student loan payment is within the safe range but his car loan is not
David’s total credit payments are higher than the recommended amount for someone earning his income
Leah is trying to explain the difference between open-end and closed-end credit to her roommate. Which should she include in her description of closed-end credit?
Credit limits vary depending on the loan balance
Interest rates vary depending on the repayment history
Equal payments are required on a regular basis until the loan is repaid
It is a continuous loan the borrower must repay with a revolving balance
