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WorksheetsCredit and Debt Quiz2
Total questions: 15
Worksheet time: 8mins
What is a credit bureau?
A company that provides loans to consumers
A company that collects and maintains individual credit information
A company that sells cars to consumers
A company that offers insurance to consumers
What is a FICO Score?
A score given by lenders to consumers
A score calculated using software from Fair Isaac Corporation
A score indicating the amount of credit a consumer has used
A score indicating the interest rate charged by lenders
What is a foreclosure?
A process in which a lender sells the asset used as collateral for the loan
A process in which a borrower receives something of value from a lender
A process in which a borrower makes multiple unsuccessful attempts to collect the amount owed by the lender
A process in which a lender attempts to recover the balance of a loan from a borrower
What is a credit inquiry?
A request from a creditor to check a debtor’s credit
A request from a lender to check a borrower’s credit
A request from a consumer to check a business’s credit
A request from a business to check a consumer’s credit
What is credit utilization?
The amount of credit a consumer has used relative to the total amount of credit extended by lenders
The amount of credit a consumer has used relative to the total amount of credit available
The amount of credit a consumer has used relative to the total amount of credit requested
The amount of credit a consumer has used relative to the total amount of credit approved
What is a collections agency?
An entity used by creditors to recover funds from consumers
An entity used by businesses to recover funds from creditors
An entity used by consumers to recover funds from lenders
An entity used by lenders to recover funds that are past due or accounts that are in default
What is interest rate?
The amount charged by a borrower to a lender for the repayment of a loan
The amount charged by a lender to a borrower for the repayment of a loan
The amount charged by a borrower to a lender for the use of money
The amount charged by a lender to a borrower for the use of money
What is credit score?
A number indicating the capacity of a lender to repay a loan
A number indicating the capacity of a borrower to repay a loan
A number indicating the capacity of a business to repay a loan
A number indicating the capacity of a creditor to repay a loan
What is a credit?
A contractual agreement in which a borrower receives something of value from a creditor
A contractual agreement in which a lender receives something of value from a borrower
A contractual agreement in which a borrower receives something of value from a lender
A contractual agreement in which a lender receives something of value from a creditor
What is a hard inquiry?
An inquiry initiated by a consumer when applying for credit
An inquiry initiated by a lender when checking a consumer’s credit
An inquiry initiated by an employer when checking a consumer’s credit
An inquiry initiated by an insurance company when checking a consumer’s credit
What is a soft inquiry?
An inquiry initiated by an insurance company when checking a consumer’s credit
An inquiry initiated by a consumer when applying for credit
An inquiry initiated by a lender when checking a consumer’s credit
An inquiry initiated by an employer when checking a consumer’s credit
What is the range of a credit score?
200 to 600
300 to 850
100 to 500
300 to 700
What is the most common credit score?
VantageScore
TransUnion Score
FICO Score
Equifax Score
What is the amount of credit utilization if a consumer has used $5,000 out of a $10,000 credit limit?
60%
40%
50%
70%
What is the purpose of a credit bureau?
To provide loans to consumers
To collect and maintain individual credit information
To offer insurance to consumers
To sell cars to consumers
