Deck 6: Credit Bureau Reports and Identity Theft

Question 1

In reviewing your payment history on a credit report,a 30 in January means

A) The previous 30 months were paid as agreed
B) Your payment was 30 to 59 days late in January
C) $30 is your minimum payment for the month of January
D) You had a balance of $30 on that card in January

Answer 1

Your payment was 30 to 59 days late in January

Question 2

Which of the following can be found on your credit report?

A) Payment history
B) Recent balance and required payment
C) The date an account was opened
D) All of these

Answer 2

All of these

Question 3

When paying off a credit card,it is best to

A) Make only the minimum payments
B) Pay it off in full
C) Pay it off in four big installments
D) Pay it off in two installments

Answer 3

Pay it off in full

Question 4

The Credit Card Act of 2009 now requires consumers under what age to show evidence of enough income to make payments or have an adult cosigner in order to receive a card in their own name?

A) 18
B) 21
C) 16
D) There is no age limit

Question 5

What is the term used to describe the state of having an outstanding balance on credit cards that is barely reduced over decades because a person is only making minimum payments and being charged a high annual percentage rate?

A) Perma-debt
B) Balance maintenance
C) Savings
D) Budget

Question 6

People who are lured by credit cards or other types of credit and get to the point where they have such large outstanding balances that they will never get out of debt fall into

A) Transferring the balances constantly
B) Credit reporting
C) Perma-debt
D) Credit score

Question 7

Mike,Therese,Tristan,and Elena want to improve their FICO credit score.Mike uses 10% of his credit limit,Therese uses 30% of her limit,Tristan uses 50% of his limit,and Elena uses 75% of her limit.Who is improving their score the most?

A) Therese
B) Elena
C) Tristan
D) Mike

Question 8

What credit score number helps to lower the interest rate and speed up your credit approval in purchasing a home?

A) 600
B) 500
C) 800
D) 700

Question 9

Who do credit card companies really like to entice with "free" items like t-shirts?

A) People in retirement
B) Empty nesters
C) College students
D) Fitness advocates

Question 10

With the Credit Card Act of 2009,credit card companies

A) Cannot offer credit cards on campus
B) Can only offer incentives under $25
C) Can only offer incentives if they are at least 1,000 feet from campus
D) Have to receive a signature from a cosigner if the student is still in school

Question 11

Which of the following is something not typically found on a credit report?

A) Type and terms of credit
B) Recent balances
C) Credit limit and balance on cards
D) Times you have viewed your own report

Question 12

You spend $1,000 on your credit card and the minimum payment is $10 a month.If you pay double the minimum payment,what will happen?

A) You will pay the debt off more quickly
B) You will end up in perma-debt
C) You will eventually pay off the debt
D) None of these

Question 13

What is one thing that the Credit Card Act of 2009 does not cover?

A) Students cannot have a credit card if they do not have a job
B) Consumers under 21 must have a cosigner or large enough income to cover payments
C) Credit card companies can't offer free gifts for applying if they are on a college campus
D) Credit card companies can only offer incentives if they are over 1,000 feet off of a college campus

Question 14

What is the simplest,most common form of debt?

A) Credit cards
B) Student loans
C) Car loans
D) House loans

Question 15

Why is it important to establish a credit history?

A) To demonstrate responsibility with credit
B) To experience perma-debt
C) To go into outstanding debt
D) None of these

Question 16

Phil,Christina,and Nick use 3%,6%,and 10% of their credit limit respectively.Who is (are)most likely to have a good credit score based on this information alone?

A) Phil
B) Christina
C) Nick
D) All of these

Question 17

Which of the following are credit reporting agencies?

A) Equifax
B) TransUnion
C) Experian
D) All of these

Question 18

Which of the following is not included in a credit report?

A) Date opened
B) Last date reported
C) Monthly payments
D) Salary information

Question 19

Of the following usage percentages,which will give you the best credit score?

A) <7% of your credit limit
B) <10% of your credit limit
C) <15% of your credit limit
D) <30% of your credit limit

Question 20

How many feet away must a credit card company be from a college campus in order to solicit credit cards?

A) 1,000
B) 500
C) 800
D) 750

Question 21

Which of the following is not a way to improve your credit score?

A) Catch up on missed payments
B) Open new accounts to show your creditworthiness
C) Pay bills on time
D) Keep credit card balances low

Question 22

In picking up racy gag gifts for a bachelorette party,how should you pay for the items?

A) Cash
B) Check
C) Debit card
D) Credit card

Question 23

How is a FICO credit score calculated?

A) Payment history accounts for about 35% of the credit score,amount owed accounts for 30%,length of credit history accounts for 15%,new credit accounts for about 10%,and types of credit in use accounts for about 10%
B) A FICO credit score is calculated solely on payment history
C) 50% of a FICO score is determined by how much is owed and 50% is determined by payment history
D) 25% is determined by payment history,20% is determined by how much is owed,25% is determined by length of credit history,and 25% is determined by types of credit in use

Question 24

What is contained in a credit report?

A) Bankruptcy records
B) Unpaid child support
C) Addresses
D) All of these

Question 25

FICO scores range between

A) 100-900
B) 250-800
C) 300-850
D) 0-1000

Question 26

Which indicator drives a FICO score the most?

A) Types of credit
B) How much you owe compared to your available credit
C) History of payments
D) Length of credit history

Question 27

What is the recommended number of major credit cards you should have?

A) 5
B) 4
C) 3
D) 2

Question 28

To keep a good FICO score you should

A) Carry a high balance
B) Keep your balance under 1/3 of your limit
C) Keep your balance under ½ your limit
D) Pay every other bill

Question 29

Which of the following are ways to improve your FICO credit score?

A) Pay your bills on time
B) Limit the number of new credit accounts
C) Keep credit card balances low
D) All of these

Question 30

What is the percentage of accountability that is shown on your FICO score for how much you owe?

A) 40%
B) 30%
C) 35%
D) 25%

Question 31

Which of the following does not have an adverse effect on your credit score?

A) Multiple credit report requests
B) Opening new accounts
C) Having a mix of both revolving and installment credit
D) Having large outstanding balances

Question 32

What percent of the FICO score comes from your length of credit history?

A) 10
B) 15
C) 30
D) 35

Question 33

What does FICO stand for?

A) Financial Investment Company
B) Fair Isaac Corporation
C) Fair Isabelle Company
D) Financial Investigation Corporation

Question 34

What are the two largest factors in determining a credit score?

A) Length of credit history and types of credit
B) History of timely payments and length of credit history
C) How much you owe in relation to your available credit and types of credit
D) How much you owe in relation to your available credit and history of timely payments

Question 35

People with the best credit scores use how much of their credit limits?

A) <50%
B) <7%
C) <30%
D) <10%

Question 36

Which of the following are ways to improve a FICO score?

A) Open new credit cards
B) Transfer balances to one credit card
C) Pay bills on time and pay as agreed
D) All of these

Question 37

Which has the biggest impact on a credit score?

A) History of timely payments
B) Length of credit history
C) Types of credit
D) Amount of money you can borrow

Question 38

Is transferring money between credit cards okay?

A) Yes,there is often 0% interest for balance transfers for a specific amount of time.
B) No,there is usually a transaction fee.
C) No,opening new accounts can lower your credit score.
D) No,there is usually a transaction fee AND it can lower your credit score.

Question 39

According to FICO's 2008 scoring model,people with the best credit have a utilization rate of no more than what percent?

A) 5%
B) 7%
C) 18%
D) 24%

Question 40

How many years does negative information stay on a credit report?

A) 5
B) 7
C) 11
D) 15

Question 41

What does FTC stand for?

A) Federal Tax Commission
B) Federal Tax Corporation
C) Federal Trade Commission
D) Financial Trade Corporation

Question 42

If your credit card limit is $15,000 and lenders like to see you using no more than 30% of your available credit,what is the most you should charge?

A) $450
B) $4,500
C) $11,500
D) $30

Question 43

How many credit bureaus are there? What are their names?

A) Three: Equifax,TransAmerica,and Experian
B) Two: TransUnion and Experian
C) Four: TransUnion,Experian,TransAmerica,and Equifax
D) Three: Equifax,TransUnion,and Experian

Question 44

Connie got a phone call saying she was randomly chosen to receive $1,000.The caller wanted to verify who she was and asked for her Social Security number.She immediately hung up because she knew she would be a victim of what?

A) Phishing
B) Skimming
C) FICO
D) None of these

Question 45

Which of the following terms is used to describe bogus marketing schemes by phone,mail,or e-mail designed to gain personal information that is then used to steal your identity?

A) Identity theft
B) Phishing
C) Scheming
D) Skimming

Question 46

Which is not a way to protect your identity?

A) Monitor your credit report
B) Check your financial statements
C) Buy a shredder
D) Carry your Social Security card with you at all times

Question 47

How many days does the credit bureau have to investigate an error found in your credit report?

A) 25
B) 90
C) 30
D) 45

Question 48

If you find an error on your credit report what should you do?

A) Nothing,it will correct itself
B) Write a letter to the credit bureau,stating the errors
C) Contact your bank
D) All of these

Question 49

_________________ is when someone steals your personal information to commit theft or fraud.

A) Stealing
B) Identity theft
C) Phishing
D) Lying

Question 50

After looking over your credit report,you may need to contact the credit bureaus for which of the following?

A) To add another account
B) To correct an error
C) To get rid of negative information
D) All of these

Question 51

What is skimming?

A) Putting the minimum required on each debt payment
B) A tight budget
C) Stealing information from a credit card by swiping it through a processing machine
D) Moving balances between credit accounts

Question 52

How many free credit reports can you receive in a year?

A) 1
B) 2
C) 3
D) 4

Question 53

Stealing credit card information by swiping it through a processing machine that gathers information is called _________________.

A) Phishing
B) Identity theft
C) Skimming
D) Equity

Question 54

What can you do to protect yourself from identity theft?

A) Check all of your financial statements for accuracy as soon as you receive them
B) Monitor your credit report
C) Carry all of your personal information such as credit cards and social security cards with you in your wallet
D) A and B

Question 55

"Skimming" is when an identity thief:

A) Looks through your trash
B) Calls homes to try to collect personal information
C) Swipes a copy of your credit card
D) All of these

Question 56

What of the following information about freezing your credit report is false?

A) You have to contact all three credit bureau agencies
B) It prevents credit,loan,and services agencies from accessing your credit report without your approval
C) It is optional
D) It is completely free

Question 57

What is the most common form of identity theft?

A) Unauthorized use of a credit card,debit card,or check
B) Using another person's personal information to obtain credit
C) Using another person's personal information to obtain a job
D) Using another person's personal information to travel to another country

Question 58

How can negative information on your credit report impact you?

A) It can prevent you from getting the apartment you wanted
B) It can keep you from getting loans
C) It can keep you from getting certain jobs
D) All of these

Question 59

What government website will help you if your identity is stolen?

A) FTC
B) SSA
C) Experian
D) No government website will help with stolen identity

Question 60

What credit score number helps lower the interest rate and speed up credit approval in purchasing a home?

A) 600
B) 500
C) 800
D) 700

Question 61

A temporary way to manage debt is to transfer the balance from one account to another,taking advantage of introductory 0% rates.

Question 62

Creditors use the rule that the best predictor of future behavior is past performance.

Question 63

In which life stage should you try to get your credit score above 800?

A) Dependent
B) Empty nest
C) Young family
D) Independent

Question 64

Opening up a new credit account affords a high probability of increasing your credit score.

Question 65

What credit score should you strive for before purchasing a home in order to lower your interest rate and receive faster approval?

A) 600
B) 700
C) 750
D) 800

Question 66

The simplest,most common form of credit is a debit card.

Question 67

A credit score is calculated from a set of mathematical formulas.

Question 68

The credit reporting companies provide you an opportunity to post a comment about your account.

Question 69

If you have established credit,you have a credit record that financial institutions can access to check if you are a good credit risk.

Question 70

The three national credit reporting agencies in the United States are TransUnion,Equifax,and Experian.

Question 71

Bill Fair and Earl Isaac came up with the FICO credit score.

Question 72

Perma-debt is paying off debt in full each month.

Question 73

What is an advantage of having a good credit score?

A) You have never been in debt
B) It is easier to get credit in an emergency
C) You will be making money for yourself rather than someone else
D) You won't fall into perma-debt

Question 74

The perfect FICO credit score is 1,000.

Question 75

Debt is an important tool to tap at different points in your life.

Question 76

During the independent life stage what can you do to build your credit score?

A) Apply for and receive your first credit card
B) Make all credit card payments on time
C) Do not use more than 30% of your credit line
D) All of these

Question 77

All three credit reporting agencies have different formats for both their paper and online reports but provide similar information.

Question 78

The only place to be assured a free copy of your credit report is through the government- sanctioned Central Source Annual Credit Report Request Service.

Question 79

Late payments made two years ago will have less influence on your credit score than a late payment made two months ago.

Question 80

In which life stage can you not legally sign a contract and therefore not get a credit card?

A) Independent life stage
B) Dependent life stage
C) Young family life stage
D) Empty nest and retirement life stages