Question 1

Which of the following will not be included on your credit report?

Accepted Answer

A)   Social Security number
B)   FICO score
C)   Unpaid accounts
D)   Companies that have recently accessed your report

Question 2

Credit scores in the 500-600 range will likely result in

Accepted Answer

A)   lower interest rates.
B)   higher interest rates.
C)   automatic acceptance of your credit application.
D)   preferential treatment of your application.

Question 3

Historical credit problems remain on a credit bureau's report for ________ years while a bankruptcy remains for ________ years.

Accepted Answer

A)   ten; twenty
B)   seven; ten
C)   eight; fifteen
D)   five; ten

Question 4

Creditors prefer a ________ level of cash inflows and ________ level of cash outflows.

Accepted Answer

A)   low; low
B)   high; low
C)   high; high
D)   medium; low

Question 5

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

Accepted Answer

A) True 
 B)False

Question 6

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Accepted Answer

A)   shoulder surfing.
B)   dumpster diving.
C)   pretexting.
D)   skimming.

Question 7

If you think that your identity has been stolen, the FTC recommends you do all of the following, except

Accepted Answer

A)   contact the credit bureaus.
B)   file a police report.
C)   destroy all of your credit cards.
D)   call your creditors.

Question 8

The ________ is a document showing information reporting your payment history and past use of credit.

Accepted Answer

A)   credit report
B)   asset payment history
C)   revolving open-end credit
D)   debit report

Question 9

Discuss the factors that are used in determining credit scoring in the FICO model.

Accepted Answer

A) PAYING YOUR BILLS ON TIME O...

Question 10

Creditors prefer a ________ amount of capital and ________ collateral in the best of circumstances.

Accepted Answer

A)   low; low
B)   high; low
C)   high; high
D)   medium; low

Question 11

All of the following are correct statements about credit, except

Accepted Answer

A)   the creditor provides funds.
B)   credit needs to be paid back in the future.
C)   credit repayment will include interest.
D)   the interest is the total amount to be repaid.

Question 12

Credit payment history makes up ________ of your credit score.

Accepted Answer

A)   30%
B)   33%
C)   35%
D)   50%

Question 13

Which of the following statements is not true regarding reviewing your credit report?

Accepted Answer

A)   You will be able to determine if any errors have been made so they can be corrected.
B)   It will help determine if there are credit cards that you should apply for to improve your credit standing.
C)   It will reveal the kind of information that lenders will consider when making a decision to extend credit.
D)   It will reveal deficiencies that you can work to eliminate to improve your credit rating.

Question 14

Most identity theft victims discover the crime in a reactive as opposed to a proactive manner.

Accepted Answer

A) True 
 B)False

Question 15

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Accepted Answer

A) True 
 B)False

Question 16

________, ________, and ________ are the three major credit bureaus.

Accepted Answer

Equifax; E...

Question 17

Which of the following will not protect you from identity theft while on vacation?

Accepted Answer

A)   Carry all credit cards, passports, and birth certificates with you.
B)   Have your mail stopped.
C)   Do not leave credit slips in restaurants.
D)   Do not leave sensitive information in your hotel room when you are not there.

Question 18

Credit bureau is required to investigate any report of erroneous information on your credit report within thirty days.

Accepted Answer

A) True 
 B)False

Question 19

When creating credit scores, credit bureaus rely on a model created by the Fair Isaac Corporation.

Accepted Answer

A) True 
 B)False

Question 20

Using more credit than can be repaid is a primary cause of individual bankruptcies.

Accepted Answer

A) True 
 B)False

Exam 7: Assessing and Securing Your Credit

When creating credit scores, credit bureaus rely on a model created by the Fair Isaac Corporation.

Correct AnswerverifiedShow Answer

Credit bureau is required to investigate any report of erroneous information on your credit report within thirty days.

Correct AnswerverifiedShow Answer

Credit payment history makes up ________ of your credit score.

Correct AnswerverifiedShow Answer

Which of the following will not protect you from identity theft while on vacation?

Correct AnswerverifiedShow Answer

Using more credit than can be repaid is a primary cause of individual bankruptcies.

Correct AnswerverifiedShow Answer

Most identity theft victims discover the crime in a reactive as opposed to a proactive manner.

Correct AnswerverifiedShow Answer

All of the following are correct statements about credit, except

Correct AnswerverifiedShow Answer

Creditors prefer a ________ amount of capital and ________ collateral in the best of circumstances.

Correct AnswerverifiedShow Answer

Which of the following statements is not true regarding reviewing your credit report?

Correct AnswerverifiedShow Answer

Historical credit problems remain on a credit bureau's report for ________ years while a bankruptcy remains for ________ years.

Correct AnswerverifiedShow Answer

Discuss the factors that are used in determining credit scoring in the FICO model.

Correct AnswerverifiedA) PAYING YOUR BILLS ON TIME O...View AnswerShow Answer

Credit issued by department stores for relatively long periods of time is called non-installment credit.

Correct AnswerverifiedShow Answer

Creditors prefer a ________ level of cash inflows and ________ level of cash outflows.

Correct AnswerverifiedShow Answer

Credit scores in the 500-600 range will likely result in

Correct AnswerverifiedShow Answer

________, ________, and ________ are the three major credit bureaus.

Correct AnswerverifiedEquifax; E...View AnswerShow Answer

Which of the following will not be included on your credit report?

Correct AnswerverifiedShow Answer

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Correct AnswerverifiedShow Answer

If you think that your identity has been stolen, the FTC recommends you do all of the following, except

Correct AnswerverifiedShow Answer

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

Correct AnswerverifiedShow Answer

The ________ is a document showing information reporting your payment history and past use of credit.

Correct AnswerverifiedShow Answer

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Creditors prefer a amount of capital and collateral in the best of circumstances.

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Historical credit problems remain on a credit bureau's report for years while a bankruptcy remains for years.

Correct Answer
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A) PAYING YOUR BILLS ON TIME O...
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Creditors prefer a level of cash inflows and level of cash outflows.

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, , and are the three major credit bureaus.

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Equifax; E...
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