Problem 1. Of the following statements, which is not a huge disadvantage of using credit?
a. it can be costly to use
b. it can be difficult to use repay if overused
c. it is more difficult to obtain than repay
d. it may tempt you to make impulse purchases
Problem 2. Improper use of credit may
a. increase your ability to save money
b. make it necessary to file for bankruptcy
c. increase your personal wealth
d. all of the above
Problem 3. Which of the following will not help you establish a good credit history?
a. paying your phone bill on time
b. financing a car and making payments on time
c. making as many purchases as possible with cash
d. never exceeding your credit limit on your credit card
Problem 4. The law that prohibits denying credit sue to gender, age, race, natural origin, religion, or marital status is
a. fair labor standards act
b. the fair Isaac act
c. equal credit opportunity act
d. fair treatment of borrowers act
Problem 5. Which of the following is not one of the three primary credit bureaus?
a. Equifax
b. Experian
c. TransUnion
d. Fair Isaac Corporation
Problem 6. The item that receives the most weight in the FICO credit scoring system is
a. the amount of credit used each month
b. credit payment history
c. credit utilization
d. credit inquiries
Problem 7. An unauthorized person who obtains a credit report under false pretenses may be
a. sued by the lender
b. sued by the borrower
c. subject to fine and imprisonment
d. all of the above
Problem 8. If you are denied credit, your first step should be to
a. sue the credit bureau that provided the negative information
b. check your credit file at the consumer bureau
c. hire an attorney and file a suit against the creditor
d. reapply for credit after you have increased your income
Problem 9. Some credit card companies might waive the annual fee on a credit card if
a. you use the card infrequently
b. you carry a large balance from month to month
c. you call and ask them to
d. credit card companies never waive annual fees
Problem 10. A credit rating (score) of _ would normally allow you to have easy approval for credit.
a. 500
b. 600
c. 700
d. 1000