WorksheetsCredit Pt.2
Total questions: 14
Worksheet time: 4hrs 30mins
Each of the following financial products will help you build a credit history EXCEPT:
Credit card
Debit card
Home mortgage
What does a credit bureau do?
extends credit to qualified buyers
provides advice on how to use credit
tracks the bill-paying habits of consumers
sends warnings to people in credit trouble
A thief takes your credit card. You report the card missing, but the thief has already run up $2,000 in bills. How much of the$2,000 are you responsible for?
Your liability is limited to $50
Your liability depends on whether the unauthorized card user is caught
You are not liable for any of the $2,000 because you reported the card stolen.
You are liable for the entire $2,000 because the card was issued in your name
Why is it important for you to review your credit report? (choose all correct answers)
Ensure the information is accurate
To guard against identity theft
It costs money to review your credit report so you want to check it once every few years
The information in your credit report serves as the basis for your credit score, which may be the only item lenders look at when making decisions
What items in your credit report have an impact on your credit score? (choose all correct answers)
Personal information
Account information
Public record information
Inquiries
If you see an error on your credit report, what should he do? (choose all correct answers)
Contact the credit reporting company at 800-555-8800 or write a letter letting them know what information is not accurate.
Tell the creditor (the company that you are borrowing money from) that you are disputing an item on your credit report.
Do nothing since the information on your credit report is not too important.
Wait 60 days because credit bureaus are constantly updating their information.
Which of the following is NOT a factor in determining a FICO score?
Getting a personal loan from a bank
Using credit cards
Paying cash for all purchases
Taking out a mortgage on a house
What factors affect a credit score? (choose all correct answers)
Type of debt
New debt
Duration of debt
Debt to credit ratio
If you do NOT have a FICO score, what factors will determine whether or not you qualify for a mortgage? (choose all correct answers)
History of rental and utility payments
Amount of your down payment and employment history
You cannot get a mortgage without a credit history
A credit score is intended to measure:
Your financial success
The risk of your not repaying debt
Your income level
The amount of money you have in the bank
Which of the following is a sign that your identity may have been stolen? (choose all correct answers)
A call from a collection agency about a debt you didnʹt incur
Bank and billing statements donʹt arrive on time
Your credit report shows accounts you didn't open
There are three credit bureaus: Experian, TransUnion, and Equifax.
True
False
You can and should obtain a free copy of your credit report annually in order to check for any suspicious activity.
True
False
Jerrod owes $2,000 on a credit card that charges him an annual percentage rate of 18%. If Jerrod stopped making payments, how long would it be before the balance on his credit card reached $4,000? Use the Rule of 72 to figure it out.
2 years
4 years
6 years
8 years
