What is a credit score?

used to determine how much credit to extend a person

Sue bought a copy of her credit report, and found incorrect information on it. She can:

Request that the credit bureau correct her credit report

What is meant by a uncollateralized loan?

a personal loan without assets to cover the loan

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VA Wise-CREDIT

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VA Wise Financial Literacy Practice Certification Test

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Questions 10

Answers

1
To improve an UNFAVORABLE credit rating, a person should
apply for more credit
open a checking account
pay bills on time
increase the number of payroll deductions
2
When a person brings an item to a pawnshop to obtain cash, the transaction is considered.
a sales agreement
an unsecured loan
a custodial payment
a collateralized loan
3
Which is considered to be open-end credit?
installment loans
mortgage
car loan
department store charge cards
4
College Senior $50,000 in loans. Earned $2000 and no savings. Charged a $5,000 vacation.
OK salary will increase
normal for college student
OK he can pay it off over along period of time
irresponsible use of credit
5
What is a credit score?
system based on the number of credit cards a person has
based solely on a persons earnings.
used to indicate a persons gross wealth
used to determine how much credit to extend a person
6
Sue bought a copy of her credit report, and found incorrect information on it. She can:
Request that the credit bureau correct her credit report
Not dispute negative incorrect information
make the creditor remove the incorrect information
tell the creditor to remove the incorrect information
7
To qualify for a Federal Housing Administration (FHA) loan, a person must generally.
prove two individuals to co-sign the loan
have one-quarter of the cost of the home for a down payment
fulfill income guidelines
have at least a high school diploma
8
When a person declares bankruptcy that fact will appear on the persons credit report:
all debts are owed
3 years
until person receives a new credit card
10 years
9
What is meant by a uncollateralized loan?
loan not backed by co-signer who agrees to cover the loan
a loan taken on a life insurance policy
a personal loan without assets to cover the loan
a home equity loan
10
Which should you do if you are unable to make payments on any of your credit card purchases.
file for bankruptcy
negotiate a new payment plan
contact IRS to avoid paying income tax
notify credit card agency to avoid late fee

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