FiCEP 2000 25- 36 Exam | Questions with 100%
Correct Answers | Verified | Latest Update 2026
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Terms in this set (60)
Because credit reports don't have The 5 C's of Credit
all the necessary information, what Character - objective measures of past behavior
is considered before granting Capacity - how much debt can be repaid
credit? Capital - amount of money
Collateral - items that can be taken away if
borrower fails to pay
Conditions - purpose of the loan, amount
requested
What are the credit card sources? Banks
Credit Unions
Retailers
Finance Companies
Retailers are a credit card source - High interest rates
whose offers typically include: - Interest rates determined by the company polices
rather than credit score
- Incentives offered at a point-of-sale when
opening an account
- A willingness to work with DMP
, Credit Unions are a credit card - Lower interest rates and fees
source and have the advantage of - Tighter credit approvals
being a nonprofit institution to serve - A commitment to better customer service since
members. Typical offers include: member is owner
Finance Companies are a credit card - Making small loans to consumers at relatively high
source and provide credit card interest rates compared to other programs
services sold through retailers. - "Interest-free" however if the balances isn't paid
Typical offers include: before offer expires the issuer charges a high int.
rate that may extend back to the date when loan
was made.
Banks are a credit card source and - High fees an interest rates
may keep their credit card programs - Mass mailings of preapproved credit cards to
or sell to national banks while potentially desirable cardholders
keeping logos on cards/printed - Credit approval that may be based less on ability
material. Typical offers include: to pay and more on ability to spend
What are the difference between They are not credit cards—there are no lines of
prepaid credit cards and credit, no monthly bills, and no interest.
credit/debt cards?
They are not debit cards because they are not
attached to a cardholder's checking or savings
account.
What fees are associated with - Application fees
prepaid cards? - Load fees (each time money is added to the card)
- Monthly maintenance fees
- Cash transaction fees (charged when cash is
withdrawn from an ATM/ITM)
How do medical bills affect a credit Only if a collection agency is involved.
score?
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (60)
Because credit reports don't have The 5 C's of Credit
all the necessary information, what Character - objective measures of past behavior
is considered before granting Capacity - how much debt can be repaid
credit? Capital - amount of money
Collateral - items that can be taken away if
borrower fails to pay
Conditions - purpose of the loan, amount
requested
What are the credit card sources? Banks
Credit Unions
Retailers
Finance Companies
Retailers are a credit card source - High interest rates
whose offers typically include: - Interest rates determined by the company polices
rather than credit score
- Incentives offered at a point-of-sale when
opening an account
- A willingness to work with DMP
, Credit Unions are a credit card - Lower interest rates and fees
source and have the advantage of - Tighter credit approvals
being a nonprofit institution to serve - A commitment to better customer service since
members. Typical offers include: member is owner
Finance Companies are a credit card - Making small loans to consumers at relatively high
source and provide credit card interest rates compared to other programs
services sold through retailers. - "Interest-free" however if the balances isn't paid
Typical offers include: before offer expires the issuer charges a high int.
rate that may extend back to the date when loan
was made.
Banks are a credit card source and - High fees an interest rates
may keep their credit card programs - Mass mailings of preapproved credit cards to
or sell to national banks while potentially desirable cardholders
keeping logos on cards/printed - Credit approval that may be based less on ability
material. Typical offers include: to pay and more on ability to spend
What are the difference between They are not credit cards—there are no lines of
prepaid credit cards and credit, no monthly bills, and no interest.
credit/debt cards?
They are not debit cards because they are not
attached to a cardholder's checking or savings
account.
What fees are associated with - Application fees
prepaid cards? - Load fees (each time money is added to the card)
- Monthly maintenance fees
- Cash transaction fees (charged when cash is
withdrawn from an ATM/ITM)
How do medical bills affect a credit Only if a collection agency is involved.
score?
