a measure of an individual's credit risk

which of the following is NOT a credit myth?

borrowing money can have serious consequences

A credit score is intended to measure

the risk of your not repaying debt

What factors affect a credit score?

all of the other factors affect a credit score

which of the following best summarizes how using credit cards vs cash changes spending behavior

consumers spend more when using credit card instead of cash

which of the following is the most cost-effective option for purchasing a home?

the most ideal way to buy a house is with 100% down.

which of the following is a sign that your identity may have been stolen?

all of the answers are signs of possible identity theft

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B603 DR Chapter 4

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Covering the concepts & terms in chapter 4 of Foundations in Personal Finance, High School Edition. Dave Ramsey

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Questions 14

Answers

1
Which of the following is NOT a factor in determining a FICO score?
paying cash for all purchases
using credit cards
getting a personal loan from a bank
taking out a mortgage on the house
2
the credit score is
a measure of who's had coach schroeder for money management
a measure of an individual's credit risk
a measure of how financially sound a person is
a measure of how good of a person you are
3
Co-signing for a loan is a good way to help a friend or relative
No
ohhh HELL no!
Yes
4
which of the following is NOT a credit myth?
debt is a tool to be used to create prosperity
you have "arrived" when you get approved for a credit card
the lottery & gambling will make you rich
borrowing money can have serious consequences
5
account info stays on your credit report for 7 years, except for chapter 7 bankruptcy, which
stays for 5 years
stays for 1 year
stays for 10 years
stays for 20 years
6
There are 3 credit bureaus: Experian, TransUnion & Equifax
Frue
Talse
False
True
7
Which of the following can't be done with a debit card but can be done with a credit card
purchase an airline ticket
rent a car
go into debt
purchase something online
8
Minimum payments made to all debts except the smallest is
Annual Fee
how dave ramsey does it on the reg
Debt Snowball
Tax deduction
9
A credit score is intended to measure
your financial success
how good you are with the ladies
the risk of your not repaying debt
the amount of money you have in the bank
10
What factors affect a credit score?
duration of debt
new debt
all of the other factors affect a credit score
type of debt
11
which of the following best summarizes how using credit cards vs cash changes spending behavior
people spend less when they are earning credit card rewards
no change in spending behavior when using cash or credit
spending behavior doesn't matter as long the balance is paid
consumers spend more when using credit card instead of cash
12
which of the following is the most cost-effective option for purchasing a home?
30-year mortgage with 20% down
30-year mortgage with the lowest monthly payments
15-year mortgage with 15% down
the most ideal way to buy a house is with 100% down.
13
Teens are a huge target of credit card companies today
True
False
14
which of the following is a sign that your identity may have been stolen?
call from a collection agency about debt that's not yours
your credit report shows accounts that you didnt open
all of the answers are signs of possible identity theft
bank & billing statements dont arrive on time

B603 DR Chapter 4 Flashcards | StudBud