Borrowing MoneyTest Review
If your credit card is lost or stolen and your report it immediately to your credit card company, the most you can lose is
$50
The three primary credit bureaus are:
Experian, Equifax, and Transunion
Who enforces most of the consumer protection laws in Oklahoma?
State Attorney General’s Office
What should you do before applying for a loan?
Get a copy of your credit report to check it for errors
What should you do to dispute any information included in your credit file?
Write a letter to the credit bureau
What else can you do to dispute any information included in your credit file?
File a report online with the credit bureau
Which act ensures all individuals have an equal opportunity to receive credit or loans?
Equal Credit Opportunity Act
True/FalseYou should borrow money to buy a new pair of shoes or to pay for your cell phone bill.
False
True/FalseYou should borrow money to pay off your credit cards.
False
You should borrow money to buy a house.
True
What type of credit includes collateral for the lender?
Secured credit
True/FalsePeople borrow money because they are uniformed about other ways to make purchases.
False
True/FalsePeople borrow money because they do not have enough cash or savings to make a purchase.
True
What type of establishment collects and distributes credit information of individuals and businesses?
Credit Bureau
What is an example of installment credit?
Credit cards
What type of loan is repaid with a fixed number of equal payments?
Installment Credit
True/FalseQualifications for borrowing money are basically the same from lender to lender.
False
True/FalseLenders are most concerned about your ability to repay the loan.
True
True/FalseBuilding a good relationship with a banker can help you get a loan.
True
True/FalseWhen shopping for a loan, it pays to compare lenders.
True
What is known as payment for the use of someone else’s money?
Interest
What score will most lenders check when you apply for a loan?
FICO
What is an official record of a borrower’s credit activity, including borrowing and payments?
Credit History
Which Act requires free credit reports for the unemployed, persons on public assistance, and fraud victims?
Consumer Credit Reporting Reform Act
Which Act prohibits debt collectors from engaging in unfair, deceptive, or abusive practices when collecting debts?
Fair Debt Collection Practices Act
Which Act requires lenders to inform potential lenders about the cost of borrowing money, including finance charges and the annual percentage rate?
Truth in Lending Act
Which Act makes it illegal for groups to make false promises or claims about improving credit history?
Credit Repair Organizations Act
Who is best qualified to repair your credit?
YOU!
What is known as the percentage rate of interest charged to the borrower?
Interest Rate
What is a contract between the borrower and the lender explaining the requirements of fulfilling the loan?
Loan Agreement
How many years can negative information stay on your credit report?
7
What could be considered negative information on a credit report?
Late Payments and Defaults on Loans
True/FalseHigher FICO scores results in higher interest rates.
False
True/FalseHigher FICO scores results in higher payments on loans.
False
True/FalseLower FICO scores result in lower interest rates.
False
True/FalseLower FICO scores result in higher interest rates.
True
What type of lenders offers loans to high risk customers at very high fees?
Payday Loan Companies
What types of lenders offer low risk customers a loan at reasonable fees?
Credit UnionsHome Equity Bank Loans
True/FalseWhen making credit card payments, always pay the minimum amount requested on the statement.
False
True/FalseWhen making credit card payments, always pay more than the minimum amount requested on the statement.
True
What can your credit score affect?
Job, Apartment, Interest Rates
What will your credit score not affect?
Monthly Balance
What is one of the most important factors when computing your credit score?
Pay your bills on time!
True/FalseInterest rates on credit cards vary with your level of income.
False
True/FalseInterest rates on credit cards are basically the same for everyone.
False
True/FalseInterest rates on credit cards will vary greatly, depending upon several factors.
True
True/FalseInterest rates on credit cards will vary little from credit company to credit card company.
False
What are designed to ensure that consumers and lenders are treated fairly and equally?
Consumer Credit Laws
What type of credit is borrowing to buy a car considered?
Secured Credit
What does APR stand for?
Annual Percentage Rate
What is not included in your credit report?
Your age, your race, and the place where you work and your supervisor’s name
What is included in your credit report?
The number of times you apply for credit
What type of clause allows the borrower to make additional payments or pay off a loan early?
Prepayment Clause