Worksheets6.01 Credit Scores
Total questions: 15
Worksheet time: 8mins
When may a person view their credit report for free?
At any time and an unlimited amount of times
Once per year, from each of the credit reporting agencies
A person may not view their report
Only when a person has sufficient financial resources
Lauren no longer wants her Belk credit card. What is the best thing she can do with the credit card?
File the credit card away for use at a later time.
Let a family member use the card.
Keep the credit card in her wallet in case she needs an ID.
Close the account by phone and in writing, then destroy the card.
When Ben attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describes what this likely means for Ben.
The interest rate on his loan will be lower, since his credit score is low.
The purchase price of the item he is trying to purchase will be higher due to his low credit score.
The monthly loan payments will be lower due to his lower credit score.
The interest rate on the loan will be higher, since his credit score is low.
Jaiden is 18-years-old and has applied for credit for the first time. His credit application was declined because he has no credit history. What would you recommend Jaiden do to build his credit history?
Acquire several credit cards.
Obtain a secured credit card.
Reapply for the credit but include a letter of recommendation.
Apply for a different credit card.
Zade's credit application has been declined because of his negative credit history. Which statement is most likely true?
He pays his bills consistently and on time.
He has applied for 4 credit cards and a car loan in the past 6 weeks.
He has received 3 traffic tickets in the past 3 months.
He holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.
Which of the following is not included in an individual's credit report?
Current and past addresses
Account balances
Medical information
Bankruptcies, foreclosures, evictions, liens, repossessions
Emma wants to develop a positive credit history. How can she do this?
Maintain reasonable amounts of credit
Have one type of credit account
Pay cash for the majority of purchases
Open credit accounts in her parents' names
Another term for revolving credit is
Open-end credit
Closed-end credit
Rotating credit
Opportunity credit
A legal claim by the government to take an individual's property or income if that person has not paid their taxes is called a:
Repossession
Lien
Eviction
Foreclosure
Mrs. Ogle was trying to get a loan for a new car. When the bank looked at her credit report, they saw her score was a 780. Based on this number, what will the bank determine?
That Mrs. Ogle has excellent credit and they will loan her money for the car at a low interest rate.
That Mrs. Ogle has OK credit and they will loan her money for the car but at an interest rate 1 point higher.
That Mrs. Ogle does not have good credit but they will loan her money at a higher interest rate.
That Mrs. Ogle is sketchy, has not paid her bills, and they will deny her loan application.
A loan for a certain amount of money that a borrower must repay in a specified number of equal payments such as a mortgage or car payment is called
Open-end credit; revolving credit
Closed-end credit; installment credit
Rotating credit
Specific credit
When a borrower fails to make mortgage payments and the lender takes possession of the property, this may take place
Eviction
Repossession
Foreclosure
Lien
BB&T is a bank that makes funds available for others to borrow. BB&T is considered the
Lender
Borrower
Credit reporting agency
Co-signer
Mr. Taft signed on a loan for his son, Ethan. If Ethan does not make the payments on the loan, Mr. Taft will have to repay the loan. Mr. Taft is the
Borrower
Lender
Co-signer
Collection agent
A record of the borrower's past loans and credit-related transactions is called
Credit score
Credit report
Credit limit
Credit history
