Personal Finance Chapter 4 Debt

Front

Which of the following is not a factor in determining a FICO score?
Using credit cards,
Paying cash for all purchases,
Taking out a mortgage on a house,
Getting a personal loan from a bank

Back

Paying cash for all purchases

Front

Which of the following is NOT a good idea for getting out of debt? Borrow money from your parents to pay for the debt, Sell something, Quit borrowing money, Get a part-time job or work overtime

Back

Borrow money from your parents to pay for the debt

Front

Which of the following things cannot be done with a debit card but can be done with a credit card?
- Purchase an airline ticket
- Purchase something online
- Rent a car
- Go into debt

Back

Go into debt

Front

Jake's credit application has been declined because of his negative credit history. Which statement is most likely to be true? Jake has received 3 traffic tickets in the past 2 months, Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage, Jake pays his bills consistently and on time, Jake has applied for 4 credit cards and a car loan in the past 6 weeks

Back

Jake has applied for 4 credit cards and a car loan in the past 6 weeks

Front

Paying the minimum payment on a credit card every month will . . .

Back

make the final amount paid substantially higher than the amount initially charged to the card

Front

Which of the following is an act of identity theft?
- Having the same name as another person
- Receiving permission to use a parent's credit card for school clothes
- Wrongfully acquiring and using someone's personal identification
- Taking the identity of another individual as inspiration for a costume

Back

Wrongfully acquiring and using someone's personal identification

Front

Which of the following actions will not make an individual vulnerable to identity theft?
Throwing mail in the garbage
Responding to an email from your depository institution (bank)
Using a computer without updated spyware

Back

Paying cash for a movie ticket

Front

What factors affect a credit score?

Back

All of these affect a credit score

Front

Which of the following statements is false?
Under FCRA, consumers are allowed to receive one free credit report every 5 years.
Prior to the FCRA, consumers were unable to challenge errors in their credit reports.
Under FCRA, creditors must notify consumers if they deny credit based on a credit report file, and they must also tell the consumer which of the 3 credit bureaus provided the report.
The U.S. Congress enacted the Fair Credit Reporting Act to address concerns over consumer credit report accuracy, privacy, and fairness.

Back

Under FCRA, consumers are allowed to receive one free credit report every 5 years.

Front

Which of the following is NOT a recommended step in the Drive Free method of purchasing a car? Start with an inexpensive car and gradually move up in car value as your savings increases. Plan your purchase in advance using the sinking fun method of saving. Place your savings in a mutual fund so that your money can make more money.

Back

Explore new car dealerships for the best interest rate.