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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. Provided a temporary loan at a high interest rate until your next paycheck
secured loans
ownership
pawn shops
payday loans
2. 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
identity theft
overspending
lien
balance owed
3. Home owners can borrow against the appraised value of their already purchased homes
default
predatory lending
home equity loans
bankruptcy Chapter 7
4. A record of whether or not a person has paid his or her bills on time in the past
balance owed
foreclosure
credit history
default
5. Legal process that allows someone deeply in debt to create a plan to repay their debts
minimum payment
bankruptcy
credit history
lien
6. Means that the APR can go up or down depending on economic factors
variable rate
mortgage
liquidation
unsecured loans
7. Is a loan that does not require collateral from the borrower
tax preparers
overspending
title for goods
unsecured loans
8. 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.
APR (Annual Percentage Rate)
predatory lending
ownership
credit cards
9. 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.
bankruptcy Chapter 7
identity theft
balance owed
liquidation
10. When someone with strong established credit signs a contract along with the borrower
co-signed loans
revolving credit
penalty
ownership
11. A legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt
foreclosure
lien
bank
usury
12. Is a fellowship of men and women who share their experience - strength - and hope with each other that they may solve their common problem and help others to recover from compulsive debting. The only requirement for membership is a desire to stop inc
bankruptcy
collateral
garnishment
debtors anonymous
13. One who places mortgage loans with lenders for a fee - but does not orginate or service loans.
minimum payment
mortgage brokers
secured loans
installment loans/credit
14. An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
credit score
payday loans
title for goods
line of credit
15. Yearly percmet amount it will cost a person to use credit
APR (Annual Percentage Rate)
revolving credit
late fee
credit cards
16. The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
identity theft
revolving credit
payday loans
prepayment
17. Money lent: a loan given in cash - especially by an employer or credit card company - in anticipation of the borrower's being able to repay it
cash advances
default
secured loans
auto finance companies
18. The date on which a financial obligation must be repaid
secured loans
title for goods
minimum payment
due date
19. A card used for making payments; balance must be paid in full when the statement is received
bankruptcy Chapter 11
garnishment
minimum payment
charge cards
20. If the consumer makes the minimum payment - interest charges continue to accrue on all outstanding balances.
finance charge
collateral
credit cards
minimum amount due
21. Provides individuals with revolving open-end credit - which they can draw from repeatedly up to some preset limit
credit cards
mortgage brokers
prepayment
grace period
22. The right to hold - possess - control and dispose of property
ownership
bankruptcy Chapter 11
bank
Truth in Lending Act of 1968
23. The act of lending money at an interest rate higher than that permitted by law
secured credit card
usury
pawn shops
bank
24. Bank or business that allows somebody to purchase goods and services and pay for them later - often with interest
credit card companies
installment loans/credit
Truth in Lending Act of 1968
balance owed
25. Charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
collateral
charge cards
mortgage brokers
pawn shops
26. Deals with debt adjustment or reorganization for individuals - allows people to put forward a plan to repay creditors over time - usually from future income
auto finance companies
minimum amount due
bankruptcy Chapter 13
Truth in Lending Act of 1968
27. A number you choose and use to identify themselves to gain access to various accounts
PIN (personal identification number)
mortgage brokers
bankruptcy Chapter 11
predatory lending
28. An interest rate that moves up and down based on the changes of an underlying interest rate index
variable interest
PIN (personal identification number)
identity theft
Truth in Lending Act of 1968
29. 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
bankruptcy Chapter 7
co-signed loans
fixed rate of interest
Truth in Lending Act of 1968
30. The total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
credit score
finance charge
late fee
bankruptcy Chapter 11
31. Interest rates are effective annual yields
grace period
fixed rate of interest
balance owed
title for goods
32. A loan that is repaid with a fixed number of periodic equal-sized payments
charge cards
finance charge
installment loans/credit
credit history
33. Debt that has been incurred primarily for the purchase of consumer goods
credit report
credit card companies
Truth in Lending Act of 1968
consumer debt
34. One that requires you to keep a savings account as security
Truth in Lending Act of 1968
overspending
interest (APR)
secured credit card
35. Taking away property due to failure to repay the debt
default
secured loans
unsecured loans
repossession
36. A report showing all accumulated credit data on an individual; This is used for granting or denying credit
variable interest
Truth in Lending Act of 1968
cash advances
credit report
37. 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.
bankruptcy
variable rate
low credit rating
predatory lending
38. Deals with reorganization of businesses - provides that - unless the court rules otherwise - the debtor remains in possession of the business and in control of its operation
bankruptcy Chapter 11
secured loans
default
debtors anonymous
39. A claim upon property to satisy a debt
title for goods
credit report
garnishment
lien
40. The unscheduled partial or complete payment of the principal amount outstanding on a loan - such as a mortgage - before it is due.
consolidation loans
fixed rate of interest
prepayment
co-signed loans
41. 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.
charge cards
auto finance companies
credit reporting agency
home equity loans
42. A payment required for not fulfilling a contract
secured credit card
low credit rating
pawn shops
penalty
43. Loans for which the borrower is required to pledge specific assets as collateral or security
foreclosure
consolidation loans
secured loans
collateral
44. A penalty for making a payment after the due date
minimum amount due
late fee
identity theft
minimum payment
45. 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
charge cards
mortgage brokers
identity theft
revolving credit
46. A numerical rating based on person's credit history that represents their credit worthiness
credit report
credit score
bank
credit cards
47. Failure to repay a debt
finance charge
default
payday loans
secured loans
48. As related to credit - an evaluatin of a person's net worth
identity theft
mortgage brokers
cash advances
collateral
49. A legal document that provides a history of ownership and entitlement by the current owner
late fee
minimum amount due
title for goods
grace period
50. Financial organization that specializes in automobile loans to consumers
home equity loans
foreclosure
auto finance companies
3 C's of credit