HDFS 2483 --- CHAPTER 6
The term to describe never being out of debt is called:
perma-debt
Which of the following is NOT something that impacts your credit score?
your employment history
What does the National Foundation of Credit Counseling do?
Provides counseling to individuals on how to manage debt
When errors are found in your credit report:
a correction can be made
Positive implications of the use of credit include:
improved credit score increased creditworthiness
A good way to build a credit score is to:
pay bills when due
True or false: Banks prefer customers with high credit scores.
true
True or false: You can receive a free credit report from www.annualcreditreport.com
true
What does the Fair Credit Billing Act (FCBA) do?
It protects consumers with billing mistakes and provides assistance in avoiding payment for defective merchandise.
Why do banks prefer customers with high credit scores?
The customer who has a high score will often pay bills on time.
Why should you keep personal information private?
To avoid identity theft
True or false: According to the Credit Card Act of 2009, credit card companies can offer college students free gifts like t-shirts for applying for credit cards on campus.
false
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.
false
Your payment history represents about 50% of your credit score calculation.
false; 35%
Your FICO score is:
the score of your credit history
T/F A credit bureau is a reporting agency that collects credit and other information about consumers.
true
True False: If you report a debit card missing before someone uses it, you are not responsible for any unauthorized transactions.
true
Which website is the only government sanctioned place that provides a free credit report?
www.annualcreditreport.com
Your maximum loss if someone uses your debit card is _____ if you report it within 2 business days after you learn about the loss.
$50
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 the age of ___ show evidence of enough income to make payments.
21
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
Where should you try to keep your credit card balances so that your credit score is not lowered?
Below a third of your limit
What are ways of building your credit?
Correctly managing your money and paying bills when due
What is typically in a credit file?
Credit limits Length accounts have been open Types of loans you have
What is a credit bureau?
A reporting agency that collects information on how promptly people and businesses pay their bills
True or false: The three names of the major credit reporting agencies are Trans Union, Equifax, and Experiment.
False
Which of the following contributes to 35% of your credit score?
Paying your bills on time
True or False: Identify theft is when someone steals your personal information to commit theft or fraud.
True
Why should you avoid sharing sensitive personal information with strangers?
Strangers can take this information and purchase items in your name.
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
Which of the following are the names of credit bureaus?
Equifax TransUnion Experian
One has the option of contesting any errors one discover on his/her credit report through the _____.
Fair Credit Reporting Act
What should you do when you receive a phone call claiming to be from your bank?
Hang up, call your local bank, ask if there is something wrong with your account(s). Go to the bank the next day to verify your account(s).
Which of the following are good deterrents of identity theft?
Keeping checks in safe place Shredding documents before throwing them away
If bankruptcy is filed by the consumer, this:
remains in the credit report for up to 10 years
Select from the following the entities that look at credit reports:
landlords insurance agents cell phone companies employers
A credit file contains your detailed _____ information.
personal
The process that identity thieves use to steal your identity through emails is called:
phishing
The Fair Credit Reporting Act:
regulates the use of credit reports, requires deletion of obsolete information, allows access of their files to consumers