Financial counselors recommend keeping credit within safe boundaries by setting money totals

NOT including mortgage under 20% of net

Which strategy would be the MOST effective to decrease the risk of fraudulent?

Signing the back of her card with your signature

How do you legally avoid paying interest when using a credit card?

Before due date pay credit card balance in full every month

Which should be included in a description about closed-end credit?

Equal payments are required on a regular basis until repaid

Which is a general rule when dealing with credit reports to minimize identity theft?

Check each credit card report at least once/year

Your credit card statement indicates that you are now paying a penalty which BEST describes why

missed making credit card payment

Paying the minimum payment on a credit card every month will

Make the final amount paid higher then initially charged

Your credit app has been declined due to negative credit history what is MOST LIKELY true

You have applied for a car loan and 4 credit cards in 6 week

You try to borrow money, and find out your credit is low. BEST description of what this means?

Interest rates on loan will be higher

The best meaning of open-end credit?

Credit is extended in advance no application each time

Which would explain the importance of understanding the process of borrowing money

When you are borrowing, you are spending future income

You don not want your Cool-R-Us store credit card. What is the BEST thing to do?

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

You wants to develop a positive credit history. How can you do this?

Maintain reasonable amounts of available credit

You are 18 next month and plan to apply for a credit card. Which statement is true?

Can only get a credit card if you have a co-signer

Your wallet is stolen what is least likely to happen

Take a college admissions exam in your name

You earn $5,000 month, have a student loan of $120, car loan of $300. What is true?

Your credit payment are within safe range b/c income

When may you view your credit report for free?

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

Which is an act of identity theft?

Wrongfully acquiring and using someone personal id

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Personal Finance Test 6a (6.01-.04)

24 termsStudBud Administration339 plays

Consumer and Homemaking Education.

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Questions 24

Answers

1
Which action will NOT make an individual vulnerable to identity theft?
Paying cash for a movie ticket
Throwing mail in the garbage
Responding to an email from ones depository institution
Using a computer without updated spyware protection
2
Financial counselors recommend keeping credit within safe boundaries by setting money totals
NOT including mortgage under 20% of net
Including mortgage under 20% of net income
Including mortgage under 40% of net income
NOT including mortgage under 40% of net
3
Which strategy would be the MOST effective to decrease the risk of fraudulent?
Using credit cards for all your purchases
Giving account numbers over the Internet & not over phone
Signing the back of her card with your signature
Carrying all credit cards in wallet so none get lost
4
How can you build a positive credit history?
obtain a secured credit card
apply for a different type of credit
reapply for the same credit
acquire several credit cards
5
How do you legally avoid paying interest when using a credit card?
Understand that using a credit card= paying
Limit the use of his credit card
Pays minimum balance every month before the due date
Before due date pay credit card balance in full every month
6
Which should be included in a description about closed-end credit?
Credit limits vary depending on the loan balance
Interest rates vary depending on the repayment hsitory
Continuous loan the borrower must repay w/ revolving balance
Equal payments are required on a regular basis until repaid
7
Which is a general rule when dealing with credit reports to minimize identity theft?
Report mistakes to only one credit reporting agency
Keep credit reports in an easily accessible location
Check each credit card report at least once/year
Wait 60 days before disputing any wrong info found on report
8
Your credit card statement indicates that you are now paying a penalty which BEST describes why
card had a lower introductory interest rate
missed making credit card payment
new computer purchased made account go over limit
credit card payment was paid in full
9
Paying the minimum payment on a credit card every month will
Make the final amount paid higher then initially charged
Help the cardholder create a plan for paying off the card
Pay a large % of the total balance owed every month
Allow the cardholder to avoid paying any interest charges
10
Your credit app has been declined due to negative credit history what is MOST LIKELY true
You have applied for a car loan and 4 credit cards in 6 week
You have 2 store credit cards, 1 car loan, & 1 mortgage
You received 3 traffic tickets in the past 2 months
You pay bill consistently and on time
11
Which personal information is LEAST LIKELY to be used by scammers?
Drivers licence number
Bank account numbers
Phone numbers
Credit card numbers
12
Which is NOT an example of a data furnisher?
Landlord
Utility company
Credit card company
Medical provider
13
You try to borrow money, and find out your credit is low. BEST description of what this means?
The interest rate on your loan will be lower
Purchase price of the item for loan will be higher
Interest rates on loan will be higher
The monthly loan payments will be lower
14
The best meaning of open-end credit?
Payments are equal and required to be paid on regular basis
A down payment must be made before receiving a loan
Credit is extended in advance no application each time
As long as you pay it back you can borrow unlimited amount
15
Which would explain the importance of understanding the process of borrowing money
Borrowing is important part of a responsible financial plan
When you are borrowing, you are spending future income
Borrowing builds a strong credit history
Borrowing strongly affects the present self
16
You don not want your Cool-R-Us store credit card. What is the BEST thing to do?
Let a family member take over the credit account
Close the account by phone and in writing, then destroy card
File the credit card away for use at a later time
Keep the credit card in wallet in case you need proof of id
17
You wants to develop a positive credit history. How can you do this?
Have one type of credit account
Open credit accounts in his parents names
Maintain reasonable amounts of available credit
Pay cash for the majority of purchases
18
You are 18 next month and plan to apply for a credit card. Which statement is true?
You cannot get a credit card until she turns 21
You need a special application since you are not 25
Can only get a credit card if you have a co-signer
You can only obtain a credit card by filling out an app
19
What is a safety tip to follow while you shop online?
Blank out the bank account number on credit card bill
Shred all sales receipts soon as the item has been received
Use a debit card
Use a credit card
20
Your wallet is stolen what is least likely to happen
Make purchase with your credit card
Rent an apartment under your name
Take a college admissions exam in your name
Use your name during an arrest
21
You earn $5,000 month, have a student loan of $120, car loan of $300. What is true?
Your student loan must be subtracted from car loan
Your credit payment are within safe range b/c income
Your student loan payment is within the safe range
Total credit payments are higher
22
When may you view your credit report for free?
At any time and unlimited number of times.
When you has sufficient financial resources.
Once a year, from each of the three main credit reporting.
You may not review his/her credit report.
23
Which is NOT included in an individuals credit report?
Bankruptcies and foreclosure
Medical information
Account balances
Current and past addresses
24
Which is an act of identity theft?
Taking the id of an individual as inspiration costume
Receiving permission to use a parents credit card
Wrongfully acquiring and using someone personal id
Having the same name as another person

Personal Finance Test 6a (6.01-.04) Flashcards | StudBud