FA Unit 8 Unit Review

Which statements are true about late credit card payments?

• They can drop your credit score by as much as 100 points

• They are an extremely rare occurrence among American credit cardholders

• They can stay on your credit report for up to 7 years

• They are the largest factor in your overall credit score

How does paying your credit card bill on time each month affect your credit score?

• It stays the same

• It lowers your score

• It raises your score

• It makes your score invalid

Which of the following are not included in your credit report?

• You bought a $300 prepaid card

• You checked your credit score on your bank’s mobile app

• You made your student loan payment on time

• You used your debit card at the grocery store

What are some consequences of struggling to pay off excess debt?

• Developing health problems from the stress of carrying debt

• Having your wages reduced by collectors on unpaid debts

• Being fired from your job if your employer finds out you have too much debt

• Having purchases repossessed (home, vehicle, etc.) for failure to make payments

Which students are most likely to have the lowest credit scores?

• Hassan has 3 credit cards with low balances and often forgets which one they need to make payments on and is late

• Bekkah has 2 credit cards and they’re usually near their credit limit

• Kareem has 3 credit cards that they pay in full every month and recently applied for a new line of credit

• Sarah has never had a credit card and has over $10,000 in her savings account

Which statements about predatory lending are true?

• They have a federally-mandated maximum APR of 25%

• They disproportionately affect communities of color

• They can come in many forms like high interest rates and excessive fees

• They often occur in conjunction with home mortgages

You should check your credit report regularly to identify potential​ (a)   or ​ (b)   activity

• errors
• fraudulant
• ways to improve your credit
• due dates

Which statements are not typically true about a secured credit card?

• A secured credit card is the same as a debit card, drawing money down directly from your checking account

• A secured credit card has interest rates far lower than those of a typical credit card

• A secured credit card requires the borrower put down a deposit to create their credit limit

• A secured credit card cannot be used to shop online, because you have to sign a receipt after every purchase

Julius reviews his credit report and decides to put a "red flag" on it. Which of the following will NOT happen?

• New lenders will double-check Julius's identity before approving a credit application

• Theo will not be able to open new lines of credit for at least 1 year

• The credit bureau has 30 days to resolve any errors in Theo’s credit report

• Late payments will be removed from Theo’s credit report for a fee

A Fico score that is labeled as good will be between ​ (a)   and ​ (b)  

• 670
• 739
• 579
• 650
• 850