Chapter 4 finance

What are factors for a FICO score? If you enter debt
What will not be a good idea for getting out of debt? Don’t borrow more money to pay off debt
Understand the concept that a debit card and credit card can have the same functions You can do the same thing with a debit card as you can with a credit card
What affects credit score? All types of debt
Understand the Fair Credit Reporting Act Before the FCRA, a consumer cannot challenge mistakes on credit report. Congress signed FCRA because of concerns on how they were done. Under the law, a creditor must let the consumer know they were denied credit because of credit score
Understand the Drive Free method Need to save cash,continually upgrade by paying cash. Avoid borrowing money to buy a car.
What is the most cost effective option for purchasing a home? 15 year mortgage based on down payment: the bigger the better
Understand the concept of “debt snowball “ Intense about paying off debt, paying off the smallest debt first, once you pay off the first,my oh must put down more for the next one to be paid off faster
What is paycheck garnishment? Creditors can legally take money from your paycheck to pay off money owed to them which is ordered by the court
How is the use of a credit card vs. cash different in spending? Spend more with credit card
What are some credit myths? Lottery, debt to great wealth, financially mature when you receive a credit card
If you do not have a FICO score, what will determine if you qualify for a mortgage? History of utility bills and payments, employment history, and down payment
What is credit score intended to measure? The risk of you not paying off debt. The higher the score, the lower the interest rates
What are some signs your identity has been stolen? If you get calls from collection agencies you did not occur, inaccurate credit report, bank and billing reports don’t arrive on time
How long does chapter 7 bankruptcy stay on your credit? 10 years
Credit card
Upside down
Lease
Introductory rate
Annual fee
Depreciation
Annual percentage
Loan term
Credit report
Debt snowball
Consigning a loan help False
Must establish credit to buy a house False
Teens are huge target True
If you are a victim False
Under fair credit reporting act False
There are 3 credit True
You can obtain True
Credit card to use car False
Okay to use credit card if you purchase over months False
Federal trade commission True

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