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WorksheetsUnit 7 Credit Test Review
Total questions: 40
Worksheet time: 20mins
When referring to the 5 Components of Credit: Character refers to _____.
borrowers reputation and payment history
a person's ability to repay a debt
refers to a borrows savings and assets
the valuable assets owned by a person that can be used to pay off a debt
circumstances that make it easier or harder to obtain a loan
When referring to the 5 Components of Credit: Capacity refers to _____.
borrowers reputation and payment history
a person's ability to repay a debt
refers to a borrows savings and assets
the valuable assets owned by a person that can be used to pay off a debt
circumstances that make it easier or harder to obtain a loan
When referring to the 5 Components of Credit: Capital refers to _____.
borrowers reputation and payment history
a person's ability to repay a debt
refers to a borrows savings and assets
the valuable assets owned by a person that can be used to pay off a debt
circumstances that make it easier or harder to obtain a loan
When referring to the 5 Components of Credit: Collateral refers to _____.
borrowers reputation and payment history
a person's ability to repay a debt
refers to a borrows savings and assets
the valuable assets owned by a person that can be used to pay off a debt
circumstances that make it easier or harder to obtain a loan
When referring to the 5 Components of Credit: Conditions refers to _____.
borrowers reputation and payment history
a person's ability to repay a debt
refers to a borrows savings and assets
the valuable assets owned by a person that can be used to pay off a debt
circumstances that make it easier or harder to obtain a loan
The Fair Credit Reporting Act _____.
regulates consumer reporting agencies
makes it illegal for creditors to discriminate on the basis of race, color, religion, national origin
The Fair Debt Collection Practices Act _____.
prevents abusive and deceptive practices by debt collectors
protects consumers against inaccurate and unfair credit billing
The Equal Credit Opportunity Act _____.
makes it illegal for creditors to discriminate on the basis of race, color, religion, national origin
bans unfair rate increases and unfair fees, requires anyone under the age of 21 to have a cosigner
The Fair Credit Billing Act _____.
protects consumers against inaccurate and unfair credit billing
bans unfair rate increases and unfair fees, requires anyone under the age of 21 to have a cosigner
The Card Act _____.
bans unfair rate increases and unfair fees, requires anyone under the age of 21 to have a cosigner
makes it possible for consumers to get a free credit report from each of the credit bureaus once a year
Fair and Accurate Transactions Act ______.
makes it possible for consumers to get a free credit report from each of the credit bureaus once a year
requires lenders to disclose the APR on disclosure form
The Truth in Lending Law _____.
requires lenders to disclose the APR on disclosure form
regulates consumer reporting agencies
A credit report is ______.
a number that reflects how well you may repay loans
a description of borrowing and paying history that describes how well you may repay loans
Credit bureaus get their information from all of the following but _____.
credit card companies
banks regarding your debit card usage
mortgage loan payments from banks or mortgage loan lenders
Which of the following is not one of the three credit bureaus that will provide a free credit report once a year.
Equifax
Experian
TransUnion
MyCreditScore
You are entitled to ___ free credit report(s) from each credit bureau each year.
1
2
3
4
Which of the following is NOT a way to establish credit?
pay credit card bills on time
using your debit card responsibly
paying car payments on time
Credit is _____
a tool for buying something now and paying for it later
property that can be taken to repay a loan
someone who agrees to sign a lease or loan with and agree to pay if you do not
Collateral is _____.
a tool for buying something now and paying for it later
property that can be taken to repay a loan
someone who agrees to sign a lease or loan with and agree to pay if you do not
A co-signer is
someone who agrees to sign a lease or loan with and agree to pay if you do not
a tool for buying something now and paying for it later
A _____ is an assessment of creditworthiness, and a _____ is a number that comes from a formula that determines creditworthiness.
credit report/credit score
credit score/credit report
Select THREE different types of information that are included on a credit report.
Credit amounts (balances and limits)
Payment history
Recent inquiries from creditors
Debit card balances and overdrafts
The largest percentage of the credit score is the
payment history
types of credit
Which of the following is a good credit score?
700 or above
600 to 700
600 or below
It is possible a good credit score can help you rent an apartment?
True
False
A disadvantage of having a poor credit score and report IF you still get a loan is ?
higher interest rate
nothing if you get the loan you get the loan
A poor credit rating can be an obstacle to getting credit, insurance, an apartment, or a job.
True
False
The following will lower your credit score
short credit history and/or missing or late payments
low outstanding credit balances and/or not apply for a lot of credit the past 6 months
The following will raise your credit score
short credit history and/or missing or late payments
low outstanding credit balances and/or not apply for a lot of credit the past 6 months
Filing Chapter 13 bankruptcy is not as bad as filing Chapter 7 bankruptcy.
True
False
Examples of general purpose credit cards are
American Express, Master Card, VISA
WalMart, Target, Lowes
Credit cards are a type of
revolving or open-ended credit
installment loan
A car payment is an example of
revolving or open-ended credit
an installment loan
Which of the following could get you more in debt without actually spending any more money ?
Putting a purchase on lay a way.
Paying only the minimum balance on your credit card.
Paying off your monthly credit balance.
Borrowing your neighbor's gardening tools.
If you lose your credit card or it is stolen, what should you do first?
wait a couple of days and see if it shows up
call the credit card company immediately, report it missing, and halt all activity on it
report it missing to the three credit reporting agencies
call your family and see if they have it]
FICO is your ____.
credit score
credit report
Which loan would not require collateral?
student loan
car loan
mortgage
pawn shop
The maturity date is ______.
when the final payment is due
amount of time you are required to make payments
The loan term is ______.
when the final payment is due
amount of time you are required to make payments
An amortization schedule is _____.
a complete table of loan payments,showing the amount of interest that comprise each payment until the loan is paid off at the end of term
how much money you have borrowed and owe someone else
