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Total questions: 10
Worksheet time: 30mins
To qualify for a Federal Housing Administration (FHA) loan, a person must generally
have at least a high school diploma
have one quarter of the cost of the home for a down payment
fulfill income guidelines
provide two individuals to co-sign the loan
A person who has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?
Notify the credit card companies in order to negotiate a new repayment plan.
Notify the credit reporting agency in order to avoid a late fee.
Contact the Internal Revenue Service in order to avoid paying income tax for a year.
File for bankruptcy in order to maintain their current credit score.
Which of the following is considered open-ended credit?
A mortgage
A car loan
Installment loans
Department store charge cards
When a person brings an item to a pawnshop to obtain cash, this transaction is considered to be
A collateralized loan
a custodial payment
an unsecured loan
a sales agreement
When a person declares bankruptcy how long will it appear on their credit report?
for 3 years
for 10 years
until they repay all of the debt they owe
until they are able to get a new credit card
What is an uncollateralized loan?
A loan not backed by a co-signer.
A personal loan without assets to cover the amount.
A home equity loan.
A loan taken on a life insurance policy.
The type of credit card issued by an oil company, bank, or department store are called _____________.
An installment card
A revolving charge card
A debit card
A credit card
When you mail your credit card payment on the due date, your payment will be considered
Late and the company will assess you a late fee.
On time as long as the postmark is on -or- before the due date.
Late, but the company will not assess a fee.
On time, because you paid it within the 5-day grace period.
The definition of credit is:
Using someone else's money, promising to repay it in the future for a fee.
Interest on money that is borrowed.
Using your money to finance a purchase.
Using someone else's money to buy goods and services.
Maxine has an auto loan that she has to pay. She will make monthly payments over five years. She has a(an) __________.
Unsecured loan
Non-installment loan
Balloon payment loan
Installment loan
