Personal Finance Chapter 6

why should you avoid sharing sensitive personal information with strangers?

strangers can take this information and purchase items in your name

which website is the only government sanctioned place that provides a free credit report?

www.annualcreditreport.com

which of the following contributes to 35% of your credit score?

paying bills on time

The term to describe never being out of debt is called?

perma-debt

The process that identity thieves use to steal your identity through emails is called"

phishing

What does the National Foundation of Credit Counseling do?

provides counseling to individuals on how to manage debt.

If bankruptcy is filed by the consumer, this:

remains in the credit report for up to 10 years

Which of the following is not something that impacts your credit score?

your employment history

how many years does credit history remain on file if you have not declared personal bankruptcy?

7 years

you should strive to get your credit score above_____before you purchase a home?

800

The law that protects consumers by setting standards for correcting billing mistakes and allowing customers to avoid paying for defective merchandise is called the______.

Fair Credit Billing Act

The fair credit reporting act:

Regulates the use of credit reports, requires the deletion of obsolete information, and gives consumers access to their files

Why do banks prefer customers with high credit scores?

The customer who has a high score will often pay bills on time

when errors are found in your credit report:

a correction can be made

what is a credit bureau?

a reporting agency that collects information on how promptly people and businesses pay their bills.

True or False: Your payment history represents 50% of your credit score calculation.

False

your FICO score is?

The score of your credit history

a good way to build a credit score is to:

pay bills when due

Where should you try to keep your credit balances so that your credit score is not lowered?

below a third of your limit

A credit file contains your detailed________information.

credit

True or False: FICO credit scores place more weight on past behavior than recent behavior.

false

True or False: The credit history of one person can affect the credit score of another.

true

True or False: You can receive a free credit report from www.annualcreditreport.com

true

True or False: identity theft is when someone steals your personal information to commit theft or fraud?

true

True or False: if you report a debit card missing before someone uses it, you are not responsible for any unauthorized transactions.

true

If someone has stolen your identity you should contact which of the following?

-all of your creditors -local police -one of the major credit bureaus

Entities that look at credit reports:

-cell phones companies -landlords -employers -insurance agents

What is typically in a credit file?

-credit limits -types of loans you have -length accounts have been open

which of the following are names of credit bureaus?

-experian -equifax -transunion

Positive implications of the use of credit include?

-increased credit worthiness -improved credit score

Which of the following are good deterrents of identity theft?

-keeping checks in a safe place -shredding documents before throwing them away

The author suggests that you should have no more than____major credit cards.

2

The credit CARD act of 2009 require that a consumer under of______show evidence of enough income to make payments?

21