Edward wants to develop a positive credit history. How should he do this?

Maintain reasonable amounts of available credit

Leah is trying to explain the difference between open‐end and closed‐end credit to her roommate. Which statement should

Equal payments are required on a regular basis until the loan is repaid.

Evan is writing a scholarship essay about the importance of responsible money management. He wants to explain the meanin

When you are borrowing, you are spending future income.

When may a person view his/her credit report for free?

Once a year, from each of the three main credit reporting agencies

Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do with the credit car

Close the account by phone and in writing, then destroy the card.

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describe

The interest rates on his loan will be higher, since his credit score is lo

Jake’s credit application has been declined because of his negative credit history. Which statement is most likely to be

Jake has applied for 4 credit cards and a car loan in the past 6‐weeks.

The financial counselor that Ariel consulted about her use of credit recommended that she keep her use of credit within

Keep the total amount of money she has borrowed, including her mortgage and

studbud

Credit Scores, Reports and Basics Quiz Review

10 termsStudBud Administration18 plays

Imported from external platform

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
Edward wants to develop a positive credit history. How should he do this?
Pay cash for the majority of purchases
Maintain reasonable amounts of available credit
Have one type of credit account
Open credit accounts in his parents’ names
2
Leah is trying to explain the difference between open‐end and closed‐end credit to her roommate. Which statement should
It is a continuous loan the borrower must repay with a revolving balance.
Equal payments are required on a regular basis until the loan is repaid.
Credit limits vary depending on the loan balance.
Interest rates vary depending on the repayment history.
3
Evan is writing a scholarship essay about the importance of responsible money management. He wants to explain the meanin
Borrowing is an important part of a responsible financial plan.
Borrowing strongly affects the present self but has less impact on the futu
When you are borrowing, you are spending future income.
Borrowing builds a strong credit history because it requires individuals to
4
When may a person view his/her credit report for free?
At any time and an unlimited number of times
Once a year, from each of the three main credit reporting agencies
A person may not review his/her credit report
If a person has sufficient financial resources
5
Which is NOT an example of a data furnisher?
Credit card company
Utility company
Medical provider
Landlord
6
Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do with the credit car
Close the account by phone and in writing, then destroy the card.
Keep the credit card in her wallet in case she needs proof of identificatio
Let a family member take over the credit account so her credit score will n
File the credit card away for use at a later time.
7
When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describe
The interest rates on his loan will be higher, since his credit score is lo
The monthly loan payments will be lower due to his lower credit score.
The interest rates on his loan will be lower, since his credit score is low
The purchase price of the item he needs the loan for will be higher due to
8
Jake’s credit application has been declined because of his negative credit history. Which statement is most likely to be
Jake has received 3 traffic tickets in the past 2 months.
Jake has applied for 4 credit cards and a car loan in the past 6‐weeks.
Jake holds 2 store credit cards, a bank credit card, a car loan, and a mort
Jake pays his bills consistently and on time.
9
The financial counselor that Ariel consulted about her use of credit recommended that she keep her use of credit within
Keep the total amount of money she has borrowed, including her mortgage and
Keep the total amount of money she has borrowed, not including her house, u
Keep the total amount of money she has borrowed, including her mortgage and
10
Which of the following is NOT included in an individual’s credit report?
Bankruptcies and foreclosures
Current and past addresses
Medical information
Account balances

Credit Scores, Reports and Basics Quiz Review Flashcards | StudBud