Personal Finance and Debt Management Review

Test review- dave ramsey Question Answer C- Borrowing money from your parent to pay for the What is not a good idea for getting out of debt? debt. B- Both A & B. The history of rental and utility If you do not have a FICO score, what factors will payments as well as the amount of your down payment determine whether or not you qualify for a mortgage? and employment history can determine if you qualify; Which of the following things cannot be done with a debit D- Going into debt. A debit card acts like cash, and card but can be done with a credit card? does not borrow money from other suppliers. All of the answers. A call from your collection agency, a Which of the following is a sign that your identity may credit report showing suspicious account openings, or have been stolen? bank and billing statements that do not arrive on time can be signs of identity theft. A credit score is intended to measure: B-The risk of your not repaying a debt. Which of the following is NOT a recommended step in the C- Exploring new car dealerships for the best interest Drive Free method of purchasing a car? rate. B- The most ideal way to buy a house is with 100% Which of the following is the most cost-effective option down; if that is not an option, you should get no more for purchasing a home? than a 15-year plan, fixed rate mortgage with a down payment of at least 10%. What best summarizes how the use of the credit card for C- Studies show that consumers typically spend more purchases instead of cash can change one's spending when using credit as opposed to cash purchases. behavior? What is paycheck garnishment? Which of the following is a credit TRUTH? (not a credit myth) What factors affect a credit score? Which of the following statements is false? Which of the following is not recommended in the debt snowball method of getting out of debt? Individual account information is removed from your credit report score seven years after the last activity on the account, except for Chapter 7 bankruptcy, which stays on your credit report for: Which of the following is not a factor in determining a FICO score? A yearly fee that's charged by the credit card company for the convenience of the credit card ... A long-term rental agreement on a car, a form of secured long-term debt... A decrease in loss or value... A detailed report of an individual's credit history... A card issued by a bank that allows users to finance a purchase... Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan... Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments... D- A court-ordered attachment that allows a lender to take money that you owe directly from your paycheck. (E.g. If a parent is not paying child-support, then the money might start to get pulled from his paycheck.) C- Borrowing money can have serious consequences and prevent you from building wealth. All of the above ( the duration of debt, new debt, type of debt, just debt overall lol) A- Under FCRA, consumers are allowed to receive one free credit report every five years. C- Every extra dollar you get should be thrown at the largest debt first. D- 10 years B- Paying cash for all purchases an Annual fee a Lease Depreciation a Credit report a Credit card Annual percentage rate (APR) Debt snowball When a person owes more on a item (car, house, etc.) than it is worth, the person is said to be ________ on the loan. An interest rate charged to a customer during the early stages of a loan; the rate often foes up after a specified period of time... Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated... True/False: Teens are huge targets of credit card companies today. True/False: You must establish credit in order to buy a house. True/False: Co-signing a loan is a good way to help a friend or relative. True/False: If you are a victim of identity theft, you are only responsible for paying back half of the debt. True/False: Under the Fair Credit Reporting Act (FCRA), any person or organization may check a person's credit information without having a legitimate need. True/False: It is okay to use a credit card if you pay it off every month. True/False: There are three credit bureaus: Experian, TransUnion, and Equifax. True/False: The Federal Trade Commission (FTC) is one of many U.S. federal agencies that regulate the consumer credit system and enforce the laws related to it. True/False: You need to have a credit card to rent a car or check in to a hotel. True/False: You can and should obtain a free copy of your credit report annually in order to check for any suspicious activity. Upside-down Introductory rate Loan term True False False False False False True True False True