RenewedMe.com - Credit 101 Exam

If you believe you are the victim of identity theft, you should:

Contact the fraud department of any one or all three of the consumer reporting agencies.

File a complaint with the Federal Trade Commission.

Report the theft to the police where the incident occurred.

All of the above.

What industry does not use credit as a factor determine whether you will be allowed to do business with them?

Insurance companies

All of the above

Utility services

Employers

Mortgage companies

How do the credit bureaus compile the information that is placed in your credit report?

From information submitted by your creditors.

From information submitted by your employer.

From census data information.

A good credit score ranges from:

Closing an account on which you had previously missed a payment will remove the negative information from your credit report.

Depends on the situation.

False

True

What website allows you to get a copy of your credit report for free?

annualcreditreport.com

freecreditreport.com

creditmonitoring.com

nochargecredit.com

What is the best way to shop for the best rates on a loan?

Conduct a search of various lenders sparingly, to avoid too many inquiries at once.

Wait for lenders to contact you with credit offers.

Conduct a concentrated search of various lenders over a specific amount of time.

Which of the following statements is not true regarding credit cards?

If you have older accounts in good standing, you should pay them off as soon as possible.

Having credit cards which you pay on time will raise your credit score.

People with no credit cards usually have higher scores than people who pay their credit card bills on time.

You should charge only what you can pay off at the end of every month.

You have to retain a professional agency if you want to work on repairing or cleaning your credit report.

True

False

Why do young adults often have problems obtaining credit?

They are irresponsible.

They don’t like to work.

Legally, anyone under the age of 25 needs a cosigner.

They have not established enough of a credit history on which creditors can assess their credit worthiness.