When you mail your credit card payment on the due date, your payment will be

Late, and the company will assess you a late fee

If borrower fails to repay a loan & there is a co-signer on the loan, a likely result may be

The co-signer will be responsible for the repayment

Redlining is characterized by a lender who denies a loan

To customers living in certain geographic areas

What is meant by an uncollateralized loan?

A personal loan without assets to cover it.

What is a credit score?

A number used to determine how much credit to extend someone

You can continue to charge purchases on your credit card when

The amount you owe is below your credit limit

Predatory lending practices do NOT include which of the following

A loan you can afford with the same interest as other banks

One example of a long-term retirement goal is to

deposit at least $100,000 in a retirement account.

Which is NOT a characteristic of a credit card cash advance?

It is more beneficial then a bank loan.

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W!SE Financial Literacy CREDIT Review

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W!se Financial Literacy Certification practice related to credit

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Questions 15

Answers

1
When you mail your credit card payment on the due date, your payment will be
Late, and the company will assess you a late fee
On time it was postmarked on the due date.
On time, because you paid it within the 5 day grace period
Late, but the company will not assess a fee.
2
If borrower fails to repay a loan & there is a co-signer on the loan, a likely result may be
Only the cosigner's credit will show there was a default
The co-signer will be responsible for the repayment
The co-signer has the opportunity to renegotiate the loan
The co-signer will be held responsible for 1/2 the repayment
3
Which factor would likely lead to an increase in the interest rate on a person's credit card?
Number of cash advances.
Late payments
Total amount charged
Number of purchases
4
When a person declares bankruptcy that fact will appear on the person's credit report
for a 3 year period
until the person repays all debts owed
for a 10 year period
until the person is able to receive a new credit card
5
Redlining is characterized by a lender who denies a loan
To someone applying for a loan over a certain dollar amount
To customers living in certain geographic areas
based on the customer's ability to repay
Because of a customer's age
6
What is meant by an uncollateralized loan?
a loan not backed by a co-signer
A loan taken on a life insurance policy.
A home equity loan.
A personal loan without assets to cover it.
7
What is a credit score?
A reward system based on the number of credit cards one has.
A number used to determine how much credit to extend someone
A measure used to indicate a person's gross wealth.
A formula based solely on a person's earnings.
8
You can continue to charge purchases on your credit card when
You can afford the monthly repayments
The amount you owe on the card is above your credit limit
The amount you owe is below your credit limit
Your payments are always received by the due date
9
Predatory lending practices do NOT include which of the following
A creditor soliciting to refi your home with no credit check
An individual agreeing to a high cost loan w/excessive fees
Lender who requires the loan be refinanced if you can't pay
A loan you can afford with the same interest as other banks
10
Which of the following is consider to be open-end credit?
A mortgage
Installment loans
A car loan
Department store credit cards
11
One example of a long-term retirement goal is to
close savings accounts.
end the use of credit cards.
deposit at least $100,000 in a retirement account.
invest in high risk securities.
12
To improve an UNFAVORABLE credit rating, a person should
increase the number of payroll deductions
pay bills on time
apply for more credit
open a checking account
13
Consumers who file for bankruptcy are still responsible for
Tax claims and student loans
Car loans
Mortgage loans
Credit card balances
14
Which of the following lenders charge the highest interest rate?
Finance company
Credit Union
Bank
Pawn Shop
15
Which is NOT a characteristic of a credit card cash advance?
It is more beneficial then a bank loan.
You are charged a high interest rate.
You can withdraw cash with credit a card
You may use an ATM to get one.

W!SE Financial Literacy CREDIT Review Flashcards | StudBud