HUD Housing Counseling Exam/ 357 Quizzes &
Correct Ans.
Rental Obstacle + Solutions: Low Income - Answer: -Some Renters reject people
whose Rent would be more than 30% of GMI
-Solutions
-Apply for Housing Assistance
-Expand housing search areas
-Get a roommate
-Move in w/family or friends
Strategies for decreasing expenses and debt - Answer: Prioritize "needs over
"wants"
-reduce or eliminate "wants"
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,-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
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,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
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, 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
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Correct Ans.
Rental Obstacle + Solutions: Low Income - Answer: -Some Renters reject people
whose Rent would be more than 30% of GMI
-Solutions
-Apply for Housing Assistance
-Expand housing search areas
-Get a roommate
-Move in w/family or friends
Strategies for decreasing expenses and debt - Answer: Prioritize "needs over
"wants"
-reduce or eliminate "wants"
Page 1 of 81
,-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
Page 2 of 81
,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
Page 3 of 81
, 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
Page 4 of 81
