Wise practice test Credit
When a person declares bankruptcy that fact will appear on the person?s credit report
B: for a 10 year period.
uestion 2 :
A person has three credit cards with very large outstanding balances and is unable to make payments
on any of them. Which action should the person take?
C: Notify the credit card companies in order to negotiate a new payment plan.
Question 3 : Which of the following is considered to be open-end credit?
C: Department store charge cards.
Question 4 : To qualify for a Federal Housing Administration (FHA) loan, a person must generally
Correct Answer : C: fulfill income guidelines.
Question 5 : What is meant by an uncollateralized loan?
Correct Answer : B: A personal loan without assets to cover the loan amount.
Question 6 : When a person brings an item to a pawnshop to obtain cash, the transaction is
considered
Correct Answer : A: a collateralized loan.
Question 7 : Victims of predatory lending practices are typically:
Correct Answer : C: The elderly and people with a poor credit history
Question 8 : A good practice when using credit cards is to routinely
Correct Answer : C: pay the complete balance each month.
Question 9 : Jane opened her credit card bill and was surprised by the amount she owed. She cannot
pay the full amount of the bill this month. The lowest dollar amount Jane is required to pay by the
credit card company is the:
Correct Answer : C: Minimum payment
Question 10 : Josh is shopping for a car loan. A friend told him to compare the actual cost of the loan
for one year expressed as a percentage from three banks. He needs to ask for the:
Correct Answer : B: Annual percentage rate (APR)
The decision to give an applicant credit is made a:
Correct Answer : C: Creditor
Question 9 : You are behind on your debt payments and go to a responsible credit counseling service,
the Consumer Credit Counseling Services. How can they help you?
Correct Answer : D: They can work with those who loaned you money to set up a repayment schedule
you can afford to make.
When a person declares bankruptcy that fact will appear on the person?s credit report
B: for a 10 year period.
uestion 2 :
A person has three credit cards with very large outstanding balances and is unable to make payments
on any of them. Which action should the person take?
C: Notify the credit card companies in order to negotiate a new payment plan.
Question 3 : Which of the following is considered to be open-end credit?
C: Department store charge cards.
Question 4 : To qualify for a Federal Housing Administration (FHA) loan, a person must generally
Correct Answer : C: fulfill income guidelines.
Question 5 : What is meant by an uncollateralized loan?
Correct Answer : B: A personal loan without assets to cover the loan amount.
Question 6 : When a person brings an item to a pawnshop to obtain cash, the transaction is
considered
Correct Answer : A: a collateralized loan.
Question 7 : Victims of predatory lending practices are typically:
Correct Answer : C: The elderly and people with a poor credit history
Question 8 : A good practice when using credit cards is to routinely
Correct Answer : C: pay the complete balance each month.
Question 9 : Jane opened her credit card bill and was surprised by the amount she owed. She cannot
pay the full amount of the bill this month. The lowest dollar amount Jane is required to pay by the
credit card company is the:
Correct Answer : C: Minimum payment
Question 10 : Josh is shopping for a car loan. A friend told him to compare the actual cost of the loan
for one year expressed as a percentage from three banks. He needs to ask for the:
Correct Answer : B: Annual percentage rate (APR)
The decision to give an applicant credit is made a:
Correct Answer : C: Creditor
Question 9 : You are behind on your debt payments and go to a responsible credit counseling service,
the Consumer Credit Counseling Services. How can they help you?
Correct Answer : D: They can work with those who loaned you money to set up a repayment schedule
you can afford to make.
