HUD HOUSING COUNSELING CERTIFICATION
EXAM QUESTIONS AND ANSWERS 100%
VERIFIED GRADED A+ 2026
◉ Strategies for decreasing expenses and debt. Answer: Prioritize
"needs over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services(e.g. cable, telephone)
-limit miscellaneous spending
- stick to a shopping list
- pay off a loan or credit card
- move to more affordable housing
- change insurance coverage to lower premiums
◉ Fair Credit Reporting Act (FCRA). Answer: -Right to know what is
your file
-Right to dispute incomplete or inaccurate information
- Access to your file is limited only to people w/valid need (i.e,
creditor, insurer)
-You may seek damages from violators (sue)
- States have their own rules which additionally project
,◉ What documents to use when tracking income. Answer: -
Paychecks, direct deposits slips
- If self-employed, income + expenses sheet
- Additional income checks or cash
- Government benefit letters
◉ Site to obtain free credit report. Answer:
www.annualcreditreport.com
◉ Chapter 13 bankruptcy. Answer: Allows individuals w/regular
income to develop a plan to repay all or part of their debts over 3 to
5 years can stop foreclose sure proceedings + may delinquent
mortgage payments over time
◉ Steps to take if victim of identity theft. Answer: -Place a fraud alert
w/the credit reporting agencies
- order credit reports to review + identify inaccuracies
- create an identify theft report obtain ID theft affidavit from the FTC
- File a police report
◉ Fair and Accurate credit Transcription Act (FACTA). Answer: -
Right to free annual credit report
- Right to place a fraud alert on your credit file
- Receipts may not include entirety of credit card #s
,◉ Four Steps of Asset building. Answer: 1.Chose the right bank or
credit union account
2. Build savings for emergencies + Large purchase 3. Invest for
retirement
4. Take advantage of tax credits
◉ Fair credit billing Act (FCBA). Answer: -You can dispute billing
errors associated w/credit card account
- Must be billed in a timely manner
◉ % of factors how they affect credit score. Answer: 35% account
history
30% amounts owed
15% length of credit history
10% new credit
10% types of credit used
◉ Credit reporting agencies on FICO Score. Answer: -EQUIFAX
- EXPERIAN
- TRANS UNION
◉ FICO Score. Answer: -Credit scores often referred to as
, = Fair Isaac Corporation
Range:300-850
◉ Means test. Answer: A bankruptcy qualification that considers
income + equity in assets to determine if a client has the ability to
repay part of the debt
◉ How to fix: Credit Card maxed / too much debt. Answer: -Pay
down debt + keep balances low
- Pay more than minimum
- know the balance - check statements
◉ How to fix: Delinquencies / collections / Judgments. Answer: Get
current + pay on time moving forward
- sett up payments reminders
- adjust budget
◉ Factors in determining credit score. Answer: -Payments History
- Capacity used
- Length of credit history
- Type of credit used
- New credit
EXAM QUESTIONS AND ANSWERS 100%
VERIFIED GRADED A+ 2026
◉ Strategies for decreasing expenses and debt. Answer: Prioritize
"needs over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services(e.g. cable, telephone)
-limit miscellaneous spending
- stick to a shopping list
- pay off a loan or credit card
- move to more affordable housing
- change insurance coverage to lower premiums
◉ Fair Credit Reporting Act (FCRA). Answer: -Right to know what is
your file
-Right to dispute incomplete or inaccurate information
- Access to your file is limited only to people w/valid need (i.e,
creditor, insurer)
-You may seek damages from violators (sue)
- States have their own rules which additionally project
,◉ What documents to use when tracking income. Answer: -
Paychecks, direct deposits slips
- If self-employed, income + expenses sheet
- Additional income checks or cash
- Government benefit letters
◉ Site to obtain free credit report. Answer:
www.annualcreditreport.com
◉ Chapter 13 bankruptcy. Answer: Allows individuals w/regular
income to develop a plan to repay all or part of their debts over 3 to
5 years can stop foreclose sure proceedings + may delinquent
mortgage payments over time
◉ Steps to take if victim of identity theft. Answer: -Place a fraud alert
w/the credit reporting agencies
- order credit reports to review + identify inaccuracies
- create an identify theft report obtain ID theft affidavit from the FTC
- File a police report
◉ Fair and Accurate credit Transcription Act (FACTA). Answer: -
Right to free annual credit report
- Right to place a fraud alert on your credit file
- Receipts may not include entirety of credit card #s
,◉ Four Steps of Asset building. Answer: 1.Chose the right bank or
credit union account
2. Build savings for emergencies + Large purchase 3. Invest for
retirement
4. Take advantage of tax credits
◉ Fair credit billing Act (FCBA). Answer: -You can dispute billing
errors associated w/credit card account
- Must be billed in a timely manner
◉ % of factors how they affect credit score. Answer: 35% account
history
30% amounts owed
15% length of credit history
10% new credit
10% types of credit used
◉ Credit reporting agencies on FICO Score. Answer: -EQUIFAX
- EXPERIAN
- TRANS UNION
◉ FICO Score. Answer: -Credit scores often referred to as
, = Fair Isaac Corporation
Range:300-850
◉ Means test. Answer: A bankruptcy qualification that considers
income + equity in assets to determine if a client has the ability to
repay part of the debt
◉ How to fix: Credit Card maxed / too much debt. Answer: -Pay
down debt + keep balances low
- Pay more than minimum
- know the balance - check statements
◉ How to fix: Delinquencies / collections / Judgments. Answer: Get
current + pay on time moving forward
- sett up payments reminders
- adjust budget
◉ Factors in determining credit score. Answer: -Payments History
- Capacity used
- Length of credit history
- Type of credit used
- New credit
