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Credit Records and Laws (FL8)

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

Everyone who applies for credit is approved.

a)

True

b)

False

2.

Credit guard services are a great value because they are inexpensive and provide services that you cannot do for yourself.

a)

True

b)

False

3.

Which law requires creditors to investigate and resolve billing errors?

a)

Fair Credit Reporting Act

b)

Fair Credit Billing Act

c)

Equal Credit Opportunity Act

d)

Consumer Credit Protection Act

4.

What is the most likely outcome if someone steals your identity and open a credit card in your name?

a)

Your credit score will increase because credit is being used in your name.

b)

You will not be able to open a credit card because there is already one under your name.

c)

Your credit score will decrease because the identity thief isn't paying the credit card debt.

d)

You will be arrested for credit fraud.

5.

Property pledged to assure repayment of a loan

a)

character

b)

capacity

c)

capital

d)

collateral

6.

The complete record of your borrowing and repayment performance

a)

credit report

b)

credit bureau

c)

credit check

d)

credit history

7.

Information from public records becomes part of your credit report.

a)

True

b)

False

8.

How much does a credit guard service cost?

a)

Free

b)

$5-10 per month

c)

$15-50 per month

d)

$15-50 per year

9.

Which law prohibits creditors from denying credit to someone based solely on their religion?

a)

Fair Credit Billing Act

b)

Equal Credit Opportunity Act

c)

Truth in Lending Law

d)

Fair Debt Collection Practices Act

10.

The account details section of a credit report shows the monthly balances of all of the consumer's credit accounts.

a)

True

b)

False

11.

A person or company hired by a creditor to collect the overdue balance of an account

a)

banker

b)

debt collector

c)

repossession officer

d)

loan shark

12.

A request to credit bureaus to deny all access to credit information in your credit file

a)

credit guard

b)

credit prohibition

c)

credit freeze

d)

credit history

13.

Who issues credit reports?

a)

banks

b)

credit unions

c)

credit bureaus

d)

brokers

14.

Business who provide details of current credit customers to credit bureaus in exchange for credit reports

a)

subscribers

b)

retailers

c)

subsidiaries

d)

account holders

15.

Which of the following might be included in your credit report?

a)

your outstand student loan information

b)

your pending divorce

c)

your overdue tax bill

d)

All answers are correct.

16.

The financial ability to repay a loan with present income

a)

capital

b)

capacity

c)

collateral

d)

character

17.

A responsible attitude toward honoring your financial obligations

a)

character

b)

capacity

c)

conditions

d)

capital

18.

You lose your credit card and report it to the credit card company. Someone finds your credit card and charges $500. How much will you owe to your credit card company?

a)

$0

b)

$50

c)

$100

d)

$500

19.

People who usually pay bills within the grace period, but occasionally make late payments are most likely going to have

a)

poor credit.

b)

fair credit.

c)

good credit.

d)

excellent credit.

20.

Which is NOT a credit bureau?

a)

TransUnion

b)

Experian

c)

Equifax

d)

They are all credit bureaus.

21.

How much does it cost to see your credit report?

a)

It costs around $15 each time you want to see your credit report.

b)

It's always free to see your credit report.

c)

It's free once a year from each bureau. You can pay to see it more often.

d)

You can't see your own credit report.

22.

Where do credit bureaus gather information for credit reports?

a)

from subscribers

b)

from public records

c)

from credit applications

d)

All answers are correct.

23.

Establishing a good credit record can be done very quickly.

a)

True

b)

False

24.

You can ruin your credit score very quickly.

a)

True

b)

False

25.

Which is NOT one of the five C's of creditworthiness?

a)

conditions

b)

consideration

c)

capital

d)

character

26.

Which category is given the most weight when calculating a credit score?

a)

length of credit history

b)

payment history

c)

amounts owed

d)

types of credit used

27.

How long does most information remain on your credit report?

a)

1 year

b)

5 years

c)

7 years

d)

10 years

28.

How long does bankruptcy information remain on your credit report?

a)

1 year

b)

5 years

c)

7 years

d)

10 years

29.

Which law requires lenders to disclose all costs of credit such the finance charge and annual percentage rate in writing?

a)

Consumer Credit Protection Act

b)

Fair Credit Reporting Act

c)

Fair Credit Billing Act

d)

Equal Credit Opportunity Act

30.

Which step should you take first when you start establishing credit?

a)

open a credit card

b)

get a car loan

c)

take out a small personal loan

d)

open a checking account

31.

What is the best FICO score that someone can earn?

a)

350

b)

800

c)

850

d)

900

32.

Credit reports might be requested by

a)

a bank where you have applied for a loan.

b)

a utility company when you move into a new apartment.

c)

an employer when you apply for a new job.

d)

All answers are correct.