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Test your basic knowledge |
Credit
Start Test
Study First
Subject
:
personal-finance
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Failure to repay a debt
consolidation loans
credit report
default
balance owed
2. The maximum amount of credit a lender will extend to a customer
penalty
bankruptcy Chapter 13
interest (APR)
credit limit
3. A card used for making payments; balance must be paid in full when the statement is received
charge cards
credit report
title for goods
credit limit
4. A court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
title for goods
consumer debt
debtors anonymous
garnishment
5. An interest rate that moves up and down based on the changes of an underlying interest rate index
variable interest
predatory lending
secured credit card
home equity loans
6. Taking away property due to failure to repay the debt
balance owed
repossession
fixed interest rate
credit report
7. A payment required for not fulfilling a contract
auto finance companies
default
penalty
bankruptcy Chapter 13
8. Legal process that allows someone deeply in debt to create a plan to repay their debts
credit cards
bankruptcy
identity theft
consolidation loans
9. A credit rating around 500 or lower is high enough risk that many lenders will refuse a line of credit - and those that do grant one will penalize the borrower with high interest rates and difficult terms.
title for goods
low credit rating
consolidation loans
fixed rate of interest
10. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.
identity theft
prepayment
minimum amount due
bankruptcy Chapter 7
11. Home owners can borrow against the appraised value of their already purchased homes
fixed interest rate
home equity loans
minimum amount due
prepayment
12. The price a borrow pays a creditor for the use of money over a period of time
interest (APR)
3 C's of credit
revolving credit
predatory lending
13. An interest rate that does not change
bankruptcy Chapter 13
mortgage brokers
credit reporting agency
fixed interest rate
14. When someone with strong established credit signs a contract along with the borrower
debtors anonymous
PIN (personal identification number)
secured credit card
co-signed loans
15. Aa financial institution that accepts deposits and channels the money into lending activities
fixed interest rate
Consumer Credit Counseling Services (CCCS)
bank
minimum payment
16. A long-term loan extended to someone who buys property
mortgage
line of credit
credit limit
foreclosure
17. A legal document that provides a history of ownership and entitlement by the current owner
tax preparers
garnishment
foreclosure
title for goods
18. A period in which a debt may be paid without accruing further interest or penalty
co-signed loans
grace period
credit card companies
bankruptcy
19. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
foreclosure
identity theft
payday loans
mortgage
20. Dealing with liquidation - provides for a court-appointed interim trustee to make management changes - arrange unsecured financing - and generally operate the debtor business to prevent loss.
mortgage
credit cards
credit reporting agency
bankruptcy Chapter 7
21. The amount left over after subtracting - as - for example - the amount owed on a loan (also called principal balance) or the amount in an account
payday loans
cash advances
credit rating
balance owed
22. Minimum amount due on credit balance
variable interest
cash advances
consumer debt
minimum payment
23. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
mortgage brokers
predatory lending
bank
variable rate
24. Interest rates are effective annual yields
credit card companies
fixed rate of interest
home equity loans
identity theft
25. Provided a temporary loan at a high interest rate until your next paycheck
debtors anonymous
line of credit
Truth in Lending Act of 1968
payday loans
26. Yearly percmet amount it will cost a person to use credit
Consumer Credit Counseling Services (CCCS)
APR (Annual Percentage Rate)
bankruptcy
Truth in Lending Act of 1968
27. A number you choose and use to identify themselves to gain access to various accounts
grace period
bankruptcy Chapter 11
PIN (personal identification number)
credit reporting agency
28. Loans for which the borrower is required to pledge specific assets as collateral or security
secured loans
penalty
charge cards
APR (Annual Percentage Rate)
29. A company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. It is an organization providing information on individuals' borrowing and bill paying habits.
credit reporting agency
credit card companies
usury
home equity loans
30. A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off - it becomes available again to use for another purchase or cash advance
late fee
revolving credit
secured credit card
penalty
31. A nonprofit agency that gives free advice to people in financial difficulties
Consumer Credit Counseling Services (CCCS)
interest (APR)
minimum payment
line of credit
32. Is a loan that does not require collateral from the borrower
unsecured loans
line of credit
mortgage
consumer debt
33. The act of lending money at an interest rate higher than that permitted by law
bank
usury
lien
credit card companies
34. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
foreclosure
line of credit
credit score
repossession
35. As related to credit - an evaluatin of a person's net worth
low credit rating
collateral
debtors anonymous
Truth in Lending Act of 1968
36. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
consumer debt
bankruptcy Chapter 13
overspending
bankruptcy Chapter 11
37. One large loan made to consumers to pay several debts at once
collateral
consolidation loans
lien
foreclosure
38. A penalty for making a payment after the due date
low credit rating
unsecured loans
revolving credit
late fee
39. The process of taking a business' real assets and turning them into cash - either to pay off debt or to reap a personal profit
pawn shops
liquidation
prepayment
secured loans
40. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
credit card companies
line of credit
prepayment
debtors anonymous
41. Capacity - character and collateral
42. Provides a uniform manner of calculating and presenting the terms of consumer loans to enable you to compare costs so you can make informed choices about credit
home equity loans
Truth in Lending Act of 1968
identity theft
credit history
43. A numerical rating based on person's credit history that represents their credit worthiness
balance owed
penalty
credit score
Consumer Credit Counseling Services (CCCS)
44. A record of whether or not a person has paid his or her bills on time in the past
tax preparers
title for goods
credit history
pawn shops
45. Any of a number of fraudulent - deceptive - discriminatory - or unfavorable lending practices. Many of these practices are illegal - while others are legal but not in the best interest of the borrowers.
predatory lending
credit report
credit rating
installment loans/credit
46. The right to hold - possess - control and dispose of property
3 C's of credit
credit score
ownership
secured credit card
47. A claim upon property to satisy a debt
lien
debtors anonymous
overspending
collateral
48. One that requires you to keep a savings account as security
credit report
balance owed
secured credit card
default
49. An evaluation of a person's credit history
credit rating
title for goods
collateral
minimum amount due
50. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
credit cards
Consumer Credit Counseling Services (CCCS)
unsecured loans
credit report