Types of Credit & Debt
What type is a long-term loan for buying a home?
Mortgage
Which of the 5 C's involves the length of credit history and payment history?
Character
What personal information does a credit score have on it?
Name, address, social security number, etc.
What is bankruptcy?
Declared with law unable to pay outstanding debts.
When should you contact your card issuer regarding disputing billing errors?
60 days
What type is education financing?
Student Loans
Which of the 5 C's involves your savings and assets?
Capital
What affects your credit score the most? Payment history, credit utilization, or length of credit history?
Payment history
What bankruptcy is liquidation bankruptcy?
Chapter 7
List the simple interest formula.
Interest = Principal x rate x time
What type is vehicle purchase financing?
Auto Loans
Which of the 5 C's involves debt-to-income ratio?
Capacity
What is the range of credit scores?
300 - 850
What bankruptcy is reorganization bankruptcy?
Chapter 13
What ensures accuracy and privacy of credit report information?
Fair Credit Reporting Act
Credit Cards
Which of the 5 C's involves property or valuables?
Collateral
What do the credit bureaus do?
Collect credit information, generate credit reports, share data with lenders.
What bankruptcy is business reorganization bankruptcy?
Chapter 11
10
What type is a fixed amount borrowed for specific needs?
Personal Loans
List all of the 5 C's.
Character, Capacity, Collateral, Capital, Conditions
List The Big Three Credit Bureaus.
Equifax, Experian, TransUnion
List 3 causes of bankruptcy.
Medical expenses, job loss or reduced income, poor money management, divorce or separation, unexpected emergencies, credit card debt.
Monthly payments should not exceed _________ % of monthly take-home pay.
20