Credit Test Review

A credit score of 430 will make it easy to 

• Obtain a loan 

• Obtain a Mortgage 

• Obtain a credit card

• 
  None of the 3 answer choices 

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

• File for bankruptcy in order to maintain their 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 estate tax this year

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

Ellen, Barbara, and Paul all charged $1,000 on their credit cards last year. Who paid the most in finance / interest charges?

• They all paid about the same since the method of payment per month does not influence the finance charge

• Paul, who only pays the minimum amount each month

• Barbara, who always pays off her credit card bill in full after she receives it

• Ellen, who generally pays off her credit card in full but occasionally will pay the minimum when she is short of cash

Maxing out or reaching your credit limit can help improve your credit score. 

• True

• False

Act protecting borrowers from unfair billing practices? 

• The Fair Credit Reporting Act 

• The Fair Credit Billing Act 

• The Equal Credit Opportunity Act 

• The Loan Giving Act 

The decision to give an applicant credit is made by the: 

• creditor / loaner 

• 
  Fire Department 

• 
  IRS

• borrower / applicant 

What can debt collectors do if you don't make payments towards your loans?

• Have you arrested if you owe money

• Threaten your friends about the debt you owe

• Call you between 8am-9pm to talk to you about your loans

• Call you and pretend to be police officers 

All of these help determine your FICO credit score EXCEPT...

• Length of credit history 

• Payment history 

• Amount you owe

• Lending cash to friends and family members 

It's good to avoid late payments on credit cards. 

• True

• False

A credit score of 820 will make it easy to obtain

• a mortgage

• 
  a car loan 

• a credit card 

• All 3 answer choices