Which of the following is not recommended in the debt snowball method?

every extra dollar you get should be thrown at largest debt

Advantages of Bankruptcy include all of the following except

student loan debt is automatically forgiven

Your FICO credit scores are based on which five categories?

payment history, amounts, length of history, new credit, types

Which of the following is not a good idea for getting out of debt?

borrow money from your parents to pay for the debt

Which of the following statements is false?

under FCRA allowed one free credit report every 5 years

A credit score is intended to measure

the risk of your not repaying debt

The 5 C's of credit worthiness are

Character, collateral, capacity, conditions, capital

Which of the following is true?

debt can have serious consequences

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Financial Literacy Credit and Debt

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A review for test 3 on #credit and debt

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Questions 17

Answers

1
Which of the following is not recommended in the debt snowball method?
every extra dollar you get should be thrown at largest debt
attack you debt with intensity
list your debts from smallest to largest, pay off smallest
Every time you pay off debt you add that to the next debt
2
Advantages of Bankruptcy include all of the following except
some assets are exempted
student loan debt is automatically forgiven
certain incomes can't be claimed
the cost is relatively small
3
Cost of borrowing money on an annual basis, take into account the interest rate, other fees
inflation
APR
annual fee
lease
4
Your FICO credit scores are based on which five categories?
occupation, payment history, amounts, new credit, types credit
character, capacity, capital, conditions, collateral
payment history, amounts, length of history, new credit, types
marital, status, gender, race/ethnicity, age
5
Which of the following is not a good idea for getting out of debt?
borrow money from your parents to pay for the debt
Quit borrowing money
get a part time job or work overtime
sell something
6
Teens are a huge target of credit card companies today
True
False
7
Which of the following statements is false?
before FCRA, consumers were unable to challenge errors
FCRA address concerns over consurmer credit report accuracy
Creditors must notify consumers if they deny credit
under FCRA allowed one free credit report every 5 years
8
You should obtain a free copy of your credit report annually to check for suspicious activity
false
true
9
A decrease or loss in value is
inflation
depreciation
loan
lease
10
A credit score is intended to measure
the risk of your not repaying debt
your income level
the amount of money you have in the bank
your financial success
11
The 5 C's of credit worthiness are
Current credit, capacity, capital, conditions, character
character, collateral, conditions, capital, current credit
Character, collateral, capacity, conditions, capital
Character, collateral, capacity, current credit, capital
12
There are three credit bureaus: Experian, Trans Union, and Equifax
False
True
13
Credit Bureaus gather information from all of the following EXCEPT
businesses called subsribers
credit applications
criminal records
public records
14
Which of the following is not impact a FICO score?
paying cash for all purchases
taking out a mortgage on a house
getting a personal loan from a bank
using credit cards
15
Which of the following is true?
You have arrived financially if you get a credit card
The lottery and other forms of gambling will make you rich
Debt is a tool and should be used to create prosperity
debt can have serious consequences
16
A person who borrows money from others is?
consumer
debtor
creditor
merchant
17
What factors affect a credit score?
New debt
duration of debt
Type of debt
all of the above

Financial Literacy Credit and Debt Flashcards | StudBud