Personal Finance Chapter 8

A person with a credit score of 700 would have a credit rating of

A

The act known for its provisions requiring full disclosure of all costs in a credit transaction is called the ____

Consumer credit protection act

A credit bureau issues a written statement called a(n) _____, which contains accumulated information about a person through subscribers and public records.

Credit Report

A(n) __________ is a consumer request that requires the credit bureaus to deny all access to consumer's credit information files.

Credit freeze

Before potential creditors will grant credit to you, they must determine whether you are a good risk - that you are _______

Creditworthy

________ scores are the most common credit scores lenders use to determine credit risk.

FICO

A(n) ______ credit rating is given to a person who pays all bills during the grace period, but occasionally takes longer.

Fair

The _____ provides that you may see your credit report at no charge within 60 days of a credit denial.

Fair Credit Reporting Act

T/F : The Consumer Credit Protection Act prevents discrimination in the evaluation of creditworthiness.

False - Equal Credit Opportunity

T/F : A debt collector is allowed to make telephone calls at any time in order to collect overdue balances.

False - They are not allowed to make telephone calls at any time.

T/F : A credit bureau is a nonprofit business company established by members for the benefit of members.

False - is a business that gathers, stores, and sells credit information to other businesses.

T/F : If you believe your bill contains and error, there usually is no hurry in resolving the problem.

False - they will hurry to fix the problem

T/F : An excellent credit rating results when you pay your bills on the due date every month and never miss a payment.

False - when you pay your bills before the due date

Debt collectors are required to - use any means available to collect debts, give consumers the chance to clarify and dispute their bills, be licenses, all of these.

Give consumers the chance to clarify and dispute their bills

A(n) ______ credit rating is earned when you pay your bills on time and often pay more than the minimum payment due.

Good

Paying your bills on time and paying more than the minimum payment due earns you a(n) ______ credit rating.

Good

T/F : Your credit history is an important record of you past experiences with credit, and you have rights and responsibilities for its accuracy.

True

T/F : a person is entitled to one free credit report every 12 months from each of the three major credit bureaus.

True

Which of the following would probably not be included in your credit report? Monthly balances, a listing of credit accounts, your medical history, your salary

Your medical history

In many cases, people with poor credit ratings have -- missed some monthly payments, failed to pay back debt, filed for bankruptcy, all of these.

all of these

Which of the following questions could a creditor legally ask you?

"Where do you work?"

The truth in Lending Act limits the consumer's liability to ______ after the consumer reports a credit card lost or stolen .

$50

Bankruptcy information stays on a credit report for ____ years.

10

Your letter of complaint must be acknowledged by the creditor within _______ days.

30

If you believe there is no error in your billing statement, your complaint must be in writing and mailed within _____ days after your receive the statement.

60

Within ______ days of receiving your complaint, the creditor must either correct the error or explain why the bill is correct.

90

Which of the following could become part of your credit record? lawsuit, divorce, bankruptcy, all of these

All of these

______ is the ability to repay a loan or make payments on a debt out of current income.

Capacity

Which is not one of the five "C's" of credit? Challenge, capacity, character, collateral

Challenge

A responsible attitude toward paying bills and honoring obligations on time is called ________

Character

A(n) _______ is a business that gathers, stores, and sells credit information to members.

Credit Bureau

Your ______ is the complete record of your borrowing and repayment performance.

Credit History

A(n) _____ is a company hired by a creditor to collect an overdue account balance.

Debt collector

The act of treating people differently based on prejudice rather than individual merit is called _______.

Discrimination

A(n) _______ credit rating is earned when you don't miss payments and pay off debts early.

Excellent

Which of the following would be a good first step in getting started with credit? applying for a credit card, opening a savings account, opening a store credit account

Opening a savings account

Which of the following categories constitutes the largest percentage of your FICO score? Payment history, types of credit, amounts owed, length of credit history.

Payment history

A(n) ________ system is used by credit bureaus in determining a person's credit score.

Point

A(n) ______ credit rating is likely to result in denial of new credit.

Poor

_______ are businesses that pay a monthly fee to the credit bureau for access to consumer credit information.

Subscribers

T/F : Businesses can make an inquiry to check your credit without permission.

True

T/F : In a point system, the credit bureau assigns points based on factors such as amount of incomes, amount of current debt, and number of late payments.

True

T/F : Information gathered for credit reports may come from credit applications when you apply for credit.

True

T/F : It is lawful for creditors to ask you for personal information, such as employment and residence history, in order to determine your creditworthiness.

True

T/F : Most lenders utilize some variation of the five C's of credit to determine whether or not a person is considered a good credit risk.

True

Credit reports are issued by _____

credit bureaus