Deck 6: Credit Bureau Reports and Identity Theft

Question 1

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

Answer 1

Times you have viewed your own report

Question 2

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

Answer 2

Mike

Question 3

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

A)500-600
B)601-700
C)701-759
D)760-850

Answer 3

760-850

Question 4

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 5

All of the following can be found on your credit report with the exception of

A)payment history.
B)recent balance and required payment.
C)the date an account was opened.
D)your annual salary.

Question 6

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 the options are correct.

Question 7

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 8

What is the simplest,most common form of debt?

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

Question 9

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 500 feet from campus.
D)require that you have a source of income or receive a signature from a cosigner if you do not have that income source.

Question 10

To keep your costs down 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.

Question 11

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 12

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 13

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 14

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 pay off the debt more slowly.
D)None of the options are correct.

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 the options are correct.

Question 16

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 17

Which of the following are credit reporting agencies?

A)Equifax
B)TransUnion
C)Experian
D)All of the options are correct.

Question 18

What is one potential problem that the Credit Card Act of 2009 does not address?

A)Students can have a credit card even 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 19

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.

Question 20

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 21

To keep a good FICO score,you should

A)carry a high balance.
B)keep your balance under 30% of your limit.
C)keep your balance under 50% of your limit.
D)pay every other bill.

Question 22

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 23

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

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

Question 24

Which of these measures is the most accurate predictor of your future payment performance?

A)Payment history
B)Length of credit history
C)Types of credit
D)Amount of money you can borrow

Question 25

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

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

Question 26

Generally speaking,will transferring money between credit cards benefit your overall financial health?

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 27

What is the percentage of accountability that is shown on your FICO score for how timely your payments have been?

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

Question 28

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 the options are correct.

Question 29

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

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

Question 30

What is contained in a credit report?

A)Bankruptcy records
B)Unpaid child support
C)Addresses
D)All of the options are correct.

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

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 33

FICO scores range between

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

Question 34

According to FICO 9 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 35

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 36

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 37

In paying for parking or traffic tickets,how should you pay for the items?

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

Question 38

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

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

Question 39

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 the options are correct.

Question 40

What does FICO stand for?

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

Question 41

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 42

"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 the options are correct.

Question 43

What does FTC stand for?

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

Question 44

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 45

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 46

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 47

If your credit card limit is $10,000,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)$3,000
C)$11,500
D)$30

Question 48

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 49

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 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 the options are correct.

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

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 three credit bureaus,stating the errors
C)Contact your bank
D)All of the options are correct.

Question 53

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 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

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 the options are correct.

Question 56

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

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

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

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

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

Question 59

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 the options are correct.

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

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 62

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

A)Dependent
B)Empty nest
C)Early Family
D)Independent

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

Which of these ways to improve your credit score is most likely to cause problems?

A)Pay cell phone bill on time.
B)Lower your outstanding credit card balance.
C)Leave your credit cards "on ice".
D)Take out additional cards to increase borrowing limits.

Question 70

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

Question 71

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 the options are correct.

Question 72

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)Early Family life stage
D)Empty nest and retirement life stages

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

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

Question 75

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

Question 76

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

Question 77

The perfect FICO credit score is 850.

Question 78

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

Question 79

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

Question 80

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