Personal Finance Unit 3

Convenience is an advantage of using credit. True
You should always contact your lender if you are unable to pay off a loan. True
There are less than 100,000 people each year that are victims of identity theft. False
Credit cards usually have very low interest rates. False
Identity theft skyrocketed in the 1990’s because of the invention of the internet. True
When trying to get out of debt, always pay at least the minimum payment on all debts first. True
A Chapter 7 Bankruptcy remains on a person’s credit report for 10 years. true
The current state of the economy can affect a person’s credit score. True
Your character is one of the most important things a credit bureau looks at. true
It is smart to only pay the minimum payment each month on your credit card. False
Having a bad credit score can not hurt your chances of getting a job. False
Credit limit is the maximum credit score a person can achieve. False
Student loans usually have a lower interest rate than an installment loan from a bank. true
On average, you will spend more money when you pay with cash rather then with a credit or debit card. False
An installment loan contains a set number of payments, with an equal amount going to interest and principal each month. true
Having a low credit score can make it more difficult to- obtain a car loan – open a new credit card -secure a new credit card-all of the above all of the above
Which action is LEAST important to maintaining a healthy credit score?- make on-time payments – check credit report annually- know your exact credit score – fix inaccurate information on credit report know your exact credit score
Which one of the following actions can negatively impact your credit score?- dispute an item on your credit report – forget to pay the cable bill – pay all bills in cash – use small amount of your available credit forget to pay the cable bill
Which of the following influences your credit score the most?-types of credit-payment history-length of credit-amounts owed payment history
Which of the following statements about credit scores is true-credit scores reflect how likely individuals are to repay their debts-credit scores range from the low 300’s to the mid 800’s-each person has three credit scores-all of the above all of the above
All of the following make up the big three credit reporting agencies EXCEPT.-Equifax-TransUnion-Experian-Federal Reserve Federal Reserve
How many free credit reports are you entitled to each year?- One credit report each year – Three credit reports each year – One credit report from each credit bureau – Three credit reports from each credit bureau One credit report each year
comparing what you own vs. what you owe capital
history of repaying debts character
items that can be taken from you if you do not repay debts collateral
your ability to repay debts or income capaity
overall state of the economy conditions

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