True/False
Court rulings such as bankruptcies will show up in your credit report.
True
Money borrowed to buy something with the agreement to pay for it later.
Credit
A fee representing the cost of credit is called:
a. Collateral
b. Finance charge
c. Proration
d. All of these
b. Finance charge
Which of the following types of debt would be discharged by bankruptcy?
A. Credit card bills
B. Income taxes and penalties
C. Child support D. Alimony
Credit Card Bills
Closed-ended accounts, like credit cards, can be paid off and used multiple times.
False
A legal process that relieves debts or protects them while trying to repay.
Bankruptcy
Asset pledged as security for repayment of a loan & to be forfeited in the event of a default
a. Collateral
b. Principal
c. Capital
d. Interest
a. Collateral
Credit scores are calculated on all of these factors except
A. Payment History
B. Gender
C. Amount of Income
D. Amount of Debt
B. Gender
A credit card has a pre-established limit that can be borrowed on demand, with collateral.
False
A written statement issued by a credit bureau that contains important facts about a consumer.
Credit report
The financial ability to repay a loan with present income is
a. Capital
b. Character
c. Collateral
d. Capacity
d. Capacity
Credit that can be used again and again (as long as the balance owed does not exceed the limit) is called
A. Open Ended
B. Installment
C. Closed Ended
D. Contract
A. Open Ended
Lawful uses for credit report information include investigations for credit, employment applications and insurance matters.
True
One hired to collect balances due on accounts.
Debt collector
The type of bankruptcy that is designed to wipe out unsecured debts
a. Voluntary
b. Involuntary
c. Chapter 7
d. Chapter 13
c. Chapter 7
Which of the following is NOT true about FICO scores?
A. FICO scores are the most widely used credit scores.
B. Each FICO score is a three-digit number calculated from the data on your credit reports at the three major consumer reporting agencies—Experian, TransUnion and Equifax.
C. Your FICO scores predict how likely you are to pay back a credit obligation as agreed.
D. The largest contributing factor to your FICO score is “length of credit history”
D. The largest contributing factor to your FICO score is "length of credit history
Many installment purchase agreements involve the signing of some form of contract before you take possession of the item being purchased.
True
Laws that establish maximum interest rates.
Usury Laws
What legislation requires creditors to resolve billing errors within a specified period of time?
a. Fair Credit Reporting Act
b. Fair Credit Billing Act
c. Equal Credit Opportunity Act
d. Fair Debt Collection Practices Act
b. Fair Credit Billing Act/
Which of the following is NOT true about student loans?
A. When taking a public student loan you are borrowing money from the government
B. An example of a public student loan would be borrowing from Chase Bank.
C. When in deferment on your student loan no interest will accrue to your loan balance
D. If you go into forbearance, interest will accrue on your loan balance
B. An example of a public student loan would be borrowing from Chase Bank