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WorksheetsPersonal Finance - Unit 8 Test
Total questions: 35
Worksheet time: 33mins
All of these are true about late credit card payments, EXCEPT...
They can drop your credit score by as much as 100 points
They are an extremely rare occurrence among American credit cardholders
They can stay on your credit report for up to 7 years
They are the largest factor in your overall credit score
Natalie asks 4 friends for advice on how to raise her credit score, which is currently at 650. Which is the strongest piece of advice?
Close as many credit card accounts as you can
Open up a savings account
Pay your credit card bill on time each month
Pay off your debts as slowly as possible
Which of the following actions would be included in your credit report?
You bought a $300 prepaid card
You checked your credit score on your bank’s mobile app
You made your student loan payment on time
You used your debit card at the grocery store
Struggling to pay off excess debt can lead to all of these consequences, EXCEPT...
Developing health problems from the stress of carrying debt
Having your wages reduced by collectors on unpaid debts
Being fired from your job if your employer finds out you have too much debt
Having purchases repossessed (home, vehicle, etc.) for failure to make payments
Which student is most likely to have the highest credit score?
Henry has 3 credit cards with low balances and often forgets which one they need to make payments on and is late
Debbie has 2 credit cards and they’re usually near their credit limit
Leana has 3 credit cards that she pays in full every month and recently applied for a new line of credit
Jacob has never had a credit card and has over $10,000 in his savings account
Which statement about predatory lending is TRUE?
They have a federally-mandated maximum APR of 25%
They disproportionately affect communities of color
The terms of these loans are fair to all parties involved
They were made illegal by the federal government over a decade ago
Why is it important to check your credit report regularly?
To improve your credit score through frequent hard inquiries
To identify potential errors or fraudulent activity
To monitor the transactions on your credit card
To automatically increase the credit limit on your revolving credit accounts
How is a secured credit card different from the far more typical unsecured credit card?
A secured credit card is the same as a debit card, drawing money down directly from your checking account
A secured credit card has interest rates far lower than those of a typical credit card
A secured credit card requires the borrower put down a deposit to create their credit limit
A secured credit card cannot be used to shop online, because you have to sign a receipt after every purchase
Joseph reviews his credit report and decides to put a “red flag” on it. What does that mean?
New lenders will double-check Joseph’s identity before approving a credit application
Joseph will not be able to open new lines of credit for at least 1 year
The credit bureau has 30 days to resolve any errors in Joseph’s credit report
Late payments will be removed from Joseph’s credit report for a fee
What is the highest FICO credit score you can obtain?
100
650
850
1000
What is the purpose of a credit report?
To provide a free tool for you to track your finances and budget
To compare the cost of different lines of credit
To help lenders determine if you are a qualified candidate for credit
To prove that you are authorized to work in the United States
Troy has a credit utilization ratio of 25% and he opens a new credit card without changing his spending. Which statement correctly describes what will happen to their utilization ratio?
Utilization will go up because they are increasing their number of cards
Utilization will go up because they are increasing their credit limit
Utilization will go down because they are increasing their number of cards
Utilization will go down because they are increasing their credit limit
If a potential lender checks your credit score and finds out it is above 750, which is the most likely outcome?
You will be denied the loan
You will receive a loan with a low interest rate
You will receive a loan with a high interest rate
You will receive a loan with a low principal
Which of the following statements about wages and household American debt is true?
Wages have increased proportional to prices, and debt has remained the same
Wages have increased more than prices, and debt has decreased
Wages have increased less than prices, and debt has increased
Wages and prices have remained the same, and debt has remained the same
Which of these parties is least interested in checking your credit score?
A future employer
A car dealership
An apartment leasing office
A college admissions office
What is the range for this data set?
(a)
People were surveyed about their monthly car payment, what percentage of people pay between $141 and $756?
(a)
All of the following statements are true, EXCEPT…
The median is $592
The interquartile range is $301
50% of respondents pay between $756 and $1013
75% of respondents pay less than $756
All of the following may be included on your credit report, EXCEPT…
On-time credit card payments
Unpaid bills in collections
Student loans
Bank account balance
What is a benefit of using a credit monitoring service?
It reduces the likelihood of your personal data being exposed
It automatically improves your credit score
It notifies you quickly if someone tries to open a credit account in your name
It disputes inaccurate credit information on your behalf
Samantha requests a copy of her credit report and discovers an error: her listed address is incorrect. What should Samantha do about this error?
She should pay off and close as many of her credit accounts as possible within 30 days
She should contact a lawyer who can sue the credit bureau to get the error corrected
She should report the error to the credit bureau and consider placing a red flag or freeze on her credit report
Nothing - she can’t correct the error because credit reports can only be updated by financial or government institutions
Assuming all cards have a $1000 credit limit, which person would have the lowest credit utilization ratio?
Aiden has one card and carries a $100 balance on it
Mia has one card that is at the credit limit
Luis has 10 cards and carries a $500 balance total
Pedro has 10 cards and each of them is at the credit limit
The two largest factors in your credit score are:
Whether you pay your payments on-time
How long you have had credit
The types of credit you have
Your credit utilization ratio
While lenders check your credit score in order to set appropriate loan terms, including interest rate, why might other entities, like apartment rental companies or potential employers, also want to view your credit score?
They, too, are lending you money
They use your credit score to set your rent or salary
They want to know if you are wanted for any crimes or outstanding warrants
They are trying to assess how financially responsible you are
William has had a credit card for the last year but otherwise has no credit history. He is interested in boosting his credit score before applying for an auto loan in approximately 14 months. What would help William improve his credit score?
Adding his brother, who doesn’t have a credit history, as an authorized user on his credit card
Applying for 3 additional credit cards this month
Maxing out his credit card balance up to his credit limit, and then paying it down slowly over time
Asking his credit card company to raise his credit limit, but then not increasing his spending on the card at all
Which of the following probably has the highest credit score? Assume that all of them have made regular monthly payments on time.
An 18 year old college freshman
A 20 year old waitress with two active credit cards
A 40 year old business owner with two cars, a house, and four active credit cards
A 50 year old with five credit cards who rents his house.
In the last 5 games, Kyrie scored 22, 22, 18, 12, and 21 points. What is his mean score per game?
(a)
A friend of mine kept track of how many runs the Dodgers scored in recent games the list is as follows: 5, 6, 3, 9, 0, 4, 1, 2, 7 . Find the median number of runs scored.
Which of the following lists all the five numbers needed to make a box plot?
Mean, Median, Mode, Range, and Total
Minimum, Quartile 1, Median, Quartile 3, and Maximum
Smallest, Q1, Q2, Q3, and Q4
Minimum, Maximum, Range, Mean, and Median
A formal and extensive record of how good an individual is at maintaining their credit and paying their current and past debts on time.
Credit score
Loan terms
Lender
Credit history
A number assigned to a person that indicates to lenders their capacity to repay a loan.
Credit score
Loan terms
Lender
Credit history
