HUD HOUSING COUNSELING CERTIFICATION
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS
◉ Type of credit used. Answer: Positive: Different types of credit
show variety - demonstrates that consumers can manage different
types of credit
Negative: Fever types show limited profile info - higher risk
◉ Length of credit history. Answer: -How long a person has bad
credit
Positive: Longer credit history provides more info for lenders - lower
risk
Negative- shorter history provides little to no info for lenders -
higher risk
◉ Capacity Used. Answer: -How much of credit available has the
person used
Positive: low credit utilization = financial management
Negative: High credit card balances = poor financial management -
maxed out credit cards
◉ Strategies to increase income (9). Answer: -Find second job
,-Work Over time
-Negotiate higher salary / wage
-Sell assets (e.g. car)
-Hold a yard/garage sale
-Teach a skill / craft/ activity
-Sell a craft
_Charge rent (adult +dependents living @ home)
-Evaluate tax withholding's (if over-with holding) change to increase
income received)
◉ Items to include when tracking expenses. Answer: Monthly bills
(utilities, cell phone, etc.) All Fixed monthly expenses all cash
expenses
Seasonal or annual expenses (i.e car registration, gifts, holiday
season, vacation)
◉ Documents to use when tracking expenses. Answer: -Bills
-Bank statements
-Credit cards statements
-Records for estimated amount of expected periodic expense
◉ Chapter 7 bankruptcy. Answer: Liquidation bankruptcy
,-Process of selling non-exempt assets to repay creditors in Chapter 7
bankruptcy
-Must meet w/an attorney to determine ability to repay debts -
means test
◉ Tips for avoiding predatory lending. Answer: 1.Shop for a loan
2.Ask questions
3.Beware of deals that sound to o good to be true
4. Know and understand you financial situation
◉ Credit Score. Answer: A numerical interpretation of a customer's
creditworthiness based on information in his/her credit report
◉ How to fix:
No credit / Poor credit / Limited Credit. Answer: -Open a credit card
-Secured credit card
◉ Items to include when tracking income. Answer: -Regular salary
-Temporary jobs
-Unemployment compensation
-Public assistance
, ◉ Items not to include when tracking income. Answer: -Pre -tax
payroll deductions
-Credit report
◉ Things to consider when choosing a bank account. Answer:
Services Fees- account maintenance, wire transfer, check purchasing,
money order, negligence fees - overdraft, stop payments, insufficient
funds
Fun access features-location, ATM'S, online banking, customer
service
◉ Common Predatory Lending tactics. Answer: 1. Limited time
offers
2. High risk loans (consulting / unclear terms)
3. Higher loan amounts (more than person can afford)
4. High fees or cost
5. False of hidden disclosures
6. Loan flipping (encouraged to refinance existing loans)
◉ Strategies for advising clients on investing for retirement. Answer:
-Explain importance of savings for retirement
-Highlight the benefits of tax-incentivize accounts
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS
◉ Type of credit used. Answer: Positive: Different types of credit
show variety - demonstrates that consumers can manage different
types of credit
Negative: Fever types show limited profile info - higher risk
◉ Length of credit history. Answer: -How long a person has bad
credit
Positive: Longer credit history provides more info for lenders - lower
risk
Negative- shorter history provides little to no info for lenders -
higher risk
◉ Capacity Used. Answer: -How much of credit available has the
person used
Positive: low credit utilization = financial management
Negative: High credit card balances = poor financial management -
maxed out credit cards
◉ Strategies to increase income (9). Answer: -Find second job
,-Work Over time
-Negotiate higher salary / wage
-Sell assets (e.g. car)
-Hold a yard/garage sale
-Teach a skill / craft/ activity
-Sell a craft
_Charge rent (adult +dependents living @ home)
-Evaluate tax withholding's (if over-with holding) change to increase
income received)
◉ Items to include when tracking expenses. Answer: Monthly bills
(utilities, cell phone, etc.) All Fixed monthly expenses all cash
expenses
Seasonal or annual expenses (i.e car registration, gifts, holiday
season, vacation)
◉ Documents to use when tracking expenses. Answer: -Bills
-Bank statements
-Credit cards statements
-Records for estimated amount of expected periodic expense
◉ Chapter 7 bankruptcy. Answer: Liquidation bankruptcy
,-Process of selling non-exempt assets to repay creditors in Chapter 7
bankruptcy
-Must meet w/an attorney to determine ability to repay debts -
means test
◉ Tips for avoiding predatory lending. Answer: 1.Shop for a loan
2.Ask questions
3.Beware of deals that sound to o good to be true
4. Know and understand you financial situation
◉ Credit Score. Answer: A numerical interpretation of a customer's
creditworthiness based on information in his/her credit report
◉ How to fix:
No credit / Poor credit / Limited Credit. Answer: -Open a credit card
-Secured credit card
◉ Items to include when tracking income. Answer: -Regular salary
-Temporary jobs
-Unemployment compensation
-Public assistance
, ◉ Items not to include when tracking income. Answer: -Pre -tax
payroll deductions
-Credit report
◉ Things to consider when choosing a bank account. Answer:
Services Fees- account maintenance, wire transfer, check purchasing,
money order, negligence fees - overdraft, stop payments, insufficient
funds
Fun access features-location, ATM'S, online banking, customer
service
◉ Common Predatory Lending tactics. Answer: 1. Limited time
offers
2. High risk loans (consulting / unclear terms)
3. Higher loan amounts (more than person can afford)
4. High fees or cost
5. False of hidden disclosures
6. Loan flipping (encouraged to refinance existing loans)
◉ Strategies for advising clients on investing for retirement. Answer:
-Explain importance of savings for retirement
-Highlight the benefits of tax-incentivize accounts
