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WorksheetsQuizziz - Review - Managing Credit
Total questions: 20
Worksheet time: 3600secs
Review this partial credit report, and then choose the response below that accurately depicts the information on the report.
The borrower paid a $30 fee in February 2007
This borrower was never late with any of their credit payments
This borrower's most recent payment was $30
This borrower was 30 days late on their February 2007 payment
What are the two most important factors in calculating your credit score?
Payment history and types of accounts
Amounts owed and length of credit history
Payment history and amounts owed
Length of credit history and new credit inquiries
Which of the following statements about credit scores does this bar graph support?
Credit scores tend to drop as you grow older because you are more likely to miss a payment at some point
It is more difficult for young people to borrow (i.e., get a loan) because they have less payment history for a lender to rely upon
When young people borrow, they are likely to have lower interest rates because their credit scores are lower
It is easier for young people to get loans at lower interest rates because they are likely to have never been late with a payment
Heather receives a phone call, in which an automated voice states that her credit card has been used fraudulently and that she must enter her 16-digit credit card number, using the keypad of her phone, to clear up the error. What should Heather do next?
Push 0 or say "operator" to speak with a representative from the credit card company instead
Enter the 16-digit card number, but don't enter her PIN or the 3-digit code from the back of the card
Hang up and wait for the end of her credit card billing cycle to see if there really was a fraudulent charge.
Hang up and call her credit card company using the 1-800 number on the back of her card to inquire about the issue or report the attempted phone fraud
All of the following would show up on a credit report EXCEPT...
Salary of your current job
Payment history of your car loan
Credit card payment history
Student loan activity
Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?
creditkarma.com
freecreditreport.com
getcreditreportshere.com
annualcreditreport.com
Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?
Cancel his credit cards
Make on-time payments
Get a car loan
Check his credit score
Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?
Always say "credit" when asked "credit or debit?" at a store
Ask his parents to cosign a credit card or add him as an authorized user on their credit card
Any time he borrows money from a friend or family member, be sure to pay it back promptly
Take out some private student loans, even though he doesn't need them because he has grants and scholarships
Which of the following individuals or groups would be the LEAST likely to look at your credit score?
Employers
Credit card companies
Auto insurers
A bank representative who is helping you open a savings account
Frank and Jasmere are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?
Over the five year period, Jasmere and Frank will pay the same amount for the car loan
Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment
Jasmere's monthly payment on the loan will be about $100 more than Frank's payment
Lenders are not allowed to charge people different interest rates based on their credit scores
You have a credit card and want to know the best way to use it to boost your credit score. Which step will have the GREATEST impact?
Using less than 30% of the credit limit on your card and paying it off in full every month by the due date
Always carry a balance from month to month
Make the minimum payment required on your credit card every month by the due date
Put the credit card in a drawer and don't ever use it
I forgot to pay my credit card bill one month. For how long will that payment information show up on my credit report?
Once I make the payment, it will disappear
One year
Seven years
Ten years
Who tracks all of your credit information?
Companies named Equifax, Experian and TransUnion
Federal government
Consumer Financial Protection Board (CFPB)
Lenders
Why do so many people continue to use payday loans despite the financial risk?
Payday loans usually come with much lower interest rates.
Consumers need quick access to money that is not provided by other financial institutions.
Payday loans are low-balance loans, so they are very easy for most borrowers to repay
If paid back on time, payday loans can significantly increase your credit score.
You find an error on your credit report. Your credit card account indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments. What should you do FIRST?
Contact the credit card company to have them fix it
Contact the credit reporting agency
Wait a few weeks to see if it gets resolved
Call the police to report the possible identity theft
What is the best advice to prevent identity theft?
If you check your three credit reports every year, it's almost impossible to become a victim of identity theft
Avoid buying anything online, as that's how 90% of identity theft occurs
Be careful with your credit and bank account numbers, create strong passwords, and beware of phishing emails
Use a debit card instead of a credit card whenever possible
Which of the following could have a NEGATIVE impact on your credit score?
Paying your bills on-time
Paying down balances on your credit card accounts
Decreasing your utilization of credit
Applying for multiple credit cards in a short period of time (e.g., a week)
Which of these represents a potential consequence of neglecting to pay your credit card or loan debts?
Wages or tax refunds can be garnished
Lender can file bankruptcy on your behalf
Collection agencies begin visiting your friends and family to collect your debt
Lose your job
You're paying your credit card bill and your student loan payment each month, but you're falling behind on your auto loan payment. Which friend's advice could have a NEGATIVE impact on your credit score?
Joanie says, "Call the auto lender and see if you can negotiate a lower monthly payment or some other deal."
Debbie says, "Stop making the credit card payment for a few months until you're caught up on the auto loan."
Angie says, "Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family."
Betty says, "Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential."
Which response best completes the sentence "It's best to begin establishing credit when you're young because ________" ?
Interest rates will only continue to go up as you get older
You need a credit history and report to qualify for Federal student loans
Credit scores are free for anyone under the age of 25
You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card
