Module 12
Which of these is considered to be a good FICO score?
700
Which of the following is true about credit cards?
ALL OF THESE a. Some come with rewards (ie free money) b. They are a great way to build a credit score c. Most require a credit score of 600, unless you're a student, in which case the requirement is waived
This type of bankruptcy allows the debtor to keep his or her property and pay debts over a period of 3-5 years.
Chapter 13
5 C's of Credit
Character, Capacity, Capital, Collateral, Conditions
A friend is going to college and will need a bank account to use for everyday transactions. Which type of bank account should they choose?
Checking account
Which of these is NOT one of the 5 C's of credit?
Cosign
The ___________ makes it illegal for creditors to discriminate against a credit applicant on the basis of race, color, religion, national origin, sex, marital status, age, or because the applicant receives public assistance.
Equal Credit Opportunity Act
Your creditworthiness is measured by a number called a ________
FICO score
True or false: The credit line is the minimum amount of money that you must spend monthly to keep a credit card account open.
False
True or false: Unsecured loans are always more expensive than secured loans.
False
You have found an unauthorized charge on your credit card. What should you do?
Follow the procedure to dispute the item with the credit card company
Paying your credit card balance in full will _________
Positively affect your credit record
When you establish credit, you
Prove you can manage loans responsibly
When you save money in a piggy bank to buy a new cell phone, this is most like the financial institution service of ____________.
Saving
A form of bank that specializes in residential mortgages is a
Savings and Loan (Thrift)
A withdrawal slip
Shows how much money you want to take out of your account
A repossession occurs when ________
The seller takes the goods back when the buyer fails to keep up with payments
True or false In the 5 C's of credit, Capital is measured by the amount of your savings and other assets.
True
True or false: A consequence of filing bankruptcy is that it negatively impacts your credit score.
True
True or false: Bank statements are monthly records of the activity in your bank account.
True
True or false: Lenders earn money by charging interest to borrowers.
True
True or false: Most banks today go way beyond just offering checking and savings accounts. Many offer investment services and financial advisors.
True
The term _________ refers to people who may have checking or savings accounts, but who still do a lot of business with check-cashing services and pawnshops.
Underbanked
Which of the following statements about cosigners and authorized users are correct?
When you're an authorized user, you aren't responsible for any missed payments. For a cosigned card, both you and your cosigners are responsible.
A benefit of placing money in a savings account is that your money ______
Will earn interest
To get a loan at a payday loan shop, you must write a check for the amount you want in cash plus_________.
a fee to get the cash plus a fee each time you renew the loan
One ________ of not having a bank account is having to cash checks at a check-cashing store.
cost
The ___________ is the maximum amount of available credit a cardholder may access
credit line (credit limit)
Car loans are examples of __________________.
installment closed end credit
Going into debt to improve your education is considered good debt because
it increases your investment in human capital and potentially a higher salary