Your credit app has been declined. Why?

You applied for 4 credit cards and a car loan this month

When can you see you credit report?

Once a year, from the 3 main credit reporting agencies

To limit fraudulent activity on your credit card you should

Sign the back and write please see ID

How can you not pay interest on your credit card?

Pay the entire balance each month by the date due

Equal payments on a regular basis until the loan is repaid

When disposing of a credit card you no longer want:

Close account by phone and in writing, destroy card

What should you do to build your credit history?

Maintain reasonable amount of available credit

Which of the following is an act of identity theft?

Wrongfully acquiring and using someone's personal info

In order to keep your use of credit within safe boundaries, it is recommended to:

Keep total borrowed (not house) under 20% of net income

Open-ended credit is:

Credit given in advance so you don't have to apply each time

When applying for a credit card at 18:

You will need a co-signer and proof of income

The importance of understanding the process of borrowing money:

When you are borrowing, you are spending future income

An identity thief has your driver's license, debit and credit cards. What is least likely?

Take a college admissions test in your name

Paying only the minimum payment:

makes the final amount paid much higher

You earn $2500 per month. Student loan $60. Car loan $150. Which is true?

Your credit is within the recommended safe range

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Credit and Fruad Quiz Review

23 termsStudBud Administration10 plays

Covers Protecting Yourself from Fraud, Credit Reports, Credit Basics, Understanding Credit Cards

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Questions 23

Answers

1
To minimize identity theft when dealing with credit reports"
Check each report once a year
Wait 60 days to dispute anything
Report mistake to one agency and they will alert the others.
Keep credit reports in easy to locate places
2
You are paying a penalty APR, what most likely happened?
You made the last 6 payments in full
Your new computer purchase sent you over your credit limit
Low introductory rate expired
You forgot to send a payment
3
Your credit app has been declined. Why?
You got 3 traffic tickets in the past 6 weeks
You applied for 4 credit cards and a car loan this month
You pay your bills on time each month
You have 2 store credit cards, a car loan, and a mortgage
4
Your credit score is low, which means:
monthly loan payments will be higher
monthly loan payments will be lower
interest rates will be higher
Interest rates will be lower
5
To reduce fraud when shopping online:
Use a debit card
Use a credit card
Blacken out account numbers when returning payment
Shred your receipts
6
When can you see you credit report?
Once a year, from the 3 main credit reporting agencies
A person may not review his/her credit report
At any time and an unlimited number of times
If a person has sufficient financial resources
7
To limit fraudulent activity on your credit card you should
Carry them all in your wallet so you don't lose them
use them for all purchases so you only have one bill
Sign the back and write please see ID
Give your account numbers online rather than over the phone
8
How can you not pay interest on your credit card?
Pay the entire balance each month by the date due
Pay the minimum balance each month by the date due
Limit your credit use to balance transfers only
There is no legal way
9
Closed ended Credit:
Credit limits vary depending on the loan balance
Equal payments on a regular basis until the loan is repaid
Interest rates vary depending on the repayment history
Is a continuous loan, must repay with a revolving balance
10
When disposing of a credit card you no longer want:
Close account by phone and in writing, destroy card
Keep it as proof of ID
Keep it for later use
Give it to the kids to play with
11
Who is NOT an example of a data furnisher?
utility company
credit card company
landlord
medical provider
12
What should you do to build your credit history?
Have one type of credit
Open credit in your parent's name
Maintain reasonable amount of available credit
Pay cash
13
Which of the following is an act of identity theft?
Receiving permission to use a parent's credit card
Dressing up as someone else for Halloween
Wrongfully acquiring and using someone's personal info
Having the same name as someone
14
In order to keep your use of credit within safe boundaries, it is recommended to:
Keep total borrowed (car/mortgage) under 40% of net income
Keep total borrowed (not house) under 20% of net income
Keep total borrowed (not house) under 40% of net income
Keep total borrowed (car/mortgage) under 20% of net income
15
Your credit application was denied because you have no credit history. What do you do?
Obtain a secured credit card
Re-apply for the credit, include a letter of recommendation
Apply for a different type of credit
Acquire several credit cards and manage them responsibly.
16
Open-ended credit is:
Credit given in advance so you don't have to apply each time
An unlimited amount of credit extended to you
Payments are equal and paid on a regular basis
A down payment made before you get the loan
17
When applying for a credit card at 18:
You will need a co-signer and proof of income
You will use a special application if under 25
You need to wait till you turn 21
Just fill out the application
18
The importance of understanding the process of borrowing money:
When you are borrowing, you are spending future income
Builds credit, requires individuals to file a credit report
It is an important part of a responsible financial plan
It affects the present self more than your future self
19
Which of the following actions will not make an individual vulnerable to identity theft?
Paying cash for a movie ticket
Throwing mail away in the garbage
Using a computer without updated spyware
Responding to an email from your bank
20
Which of the following is not included in a credit report?
Account balances
Medical information
Bankruptcies and foreclosures
Current and past addresses
21
An identity thief has your driver's license, debit and credit cards. What is least likely?
Take a college admissions test in your name
Rent an apartment
Make purchases with your credit card
Use your info during an arrest
22
Paying only the minimum payment:
allows you to pay no interest charges
makes the final amount paid much higher
is a great plan to reduce debt
will pay the balance down fastest
23
You earn $2500 per month. Student loan $60. Car loan $150. Which is true?
Student loans are in safe range, but car loan is not
Your credit is higher than the recommended amount
Subtract the car payments to see if you are in safe range
Your credit is within the recommended safe range

Credit and Fruad Quiz Review Flashcards | StudBud