WISE Review Part 3 - Credit

Front

Which is an example of a secured loan? Credit Card, Layaway, Mortgage, Personal Loan of $2,500

Back

Mortgage

Front

What information is NOT included when calculating an individual’s credit score? Length of credit history, Salary, Outstanding debt, Inquiries for new credit

Back

Salary

Front

Why will a low credit score affect an individual financially?

Back

Individual will pay higher interest rates for credit.

Front

Which is the following is the BEST way to improve a credit score? Options: Review your billing statement carefully every month., Check your credit report for accuracies once a year., Mail payments at least five working days before due date., Contact creditors if you have trouble paying bills on time.

Back

Mail payments at least five working days before due date.

Front

What is the type of bankruptcy where creditors ask a court to declare a person bankrupt?

Back

Involuntary

Front

Chapter 13 bankruptcy is a compulsory, court-enforced plan to repay a portion of debts over a period of how long?

Back

3 years

Front

Which of the following is NOT a service performed by a credit counselor? Help you apply for a new credit identity., Eliminate or reduce late charges and fees., Consolidate your debts and help you pay them off faster., Prevent judgments, garnishes, and bankruptcy.

Back

Help you apply for a new credit identity.

Front

How is Chapter 7 bankruptcy different from Chapter 13?

Back

You are not required to sell your assets under Chapter 13.

Front

Which of the following statements about bankruptcy is NOT true?
- Bankruptcy gives people who are heavily in debt a fresh start.
- Future credit will be easy to obtain for people who have filed bankruptcy.
- Bankruptcy will not affect certain types of debts a debtor may have.
- The laws were recently changed to make it harder to declare bankruptcy.

Back

Future credit will be easy to obtain for people who have filed bankruptcy.

Front

Which of the following is a characteristic of installment credit? Options: Varying interest rates depending on the repayment history., Varying credit limits depending upon the loan balance., A continuous loan the borrower has to repay with a revolving balance., Make equal payments on a regular basis until the loan is repaid.

Back

Make equal payments on a regular basis until the loan is repaid.