Credit Review

A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?

• Notify a credit reporting agency in order to avoid a late fee.

• File for bankruptcy in order to maintain ones current credit score.

• Notify the credit card companies in order to negotiate a new payment plan.

• Contact the Internal Revenue Service in order to avoid paying income tax this year.

Which of the following is considered to be open-end credit?

• A mortgage.

• A car loan.

• Department store charge cards.

• Installment loans.

What is meant by an uncollateralized loan?

• A loan not backed by a co-signer who agrees to cover the amount of the loan.

• A personal loan without assets to cover the loan amount.

• A home equity loan.

• A loan taken on a life insurance policy.

To qualify for a Federal Housing Administration (FHA) loan, a person must generally

• have at least a high school diploma.

• have one-quarter of the cost of the home for a down-payment.

• fulfill income guidelines.

• provide two individuals to co-sign the loan.

When a person declares bankruptcy that fact will appear on the person's credit report...

• for a 3 year period.

• for a 10 year period.

• until the person repays all debts owed.

• until the person is able to receive a new credit card.

When a person brings an item to a pawnshop to obtain cash, the transaction is considered..

• a collateralized loan.

• a custodial payment.

• an unsecured loan.

• a sales agreement.

One example of a long-term retirement goal is to

• end the use of credit cards.

• close savings accounts.

• deposit at least $100,000 in a retirement account.

• invest in high risk securities.

Consumers who file for bankruptcy are still responsible for:

• Mortgage loans

• Credit card balances

• Tax claims and student loans

• Car loans

Matt's wallet, with all his credit cards, was stolen. He needs to:

• Notify the credit card companies after he gets his next account statements to get the 800 telephone numbers to report the stolen card

• Check the next account statements for unauthorized charges and, if so, file a complaint with the credit card company

• Nothing because retailers will not accept charges by someone who does not own the card

• Notify each credit card company immediately

If you have been denied credit, a job, a license, an insurance policy, or a loan based on your credit report. You are entitled to receive a free copy of that credit report within how many days of denial?

• 30

• 60

• 90

• There is no time limit