NGPF Managing Unit Test | Baamboozle - Baamboozle

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NGPF Personal Finance

Study Slideshow

What are the two most important factors in calculating your credit score?

Amounts owed and length of credit history

Payment history and types of accounts

Length of credit history and new credit inquiries

Payment history and total debt

15

Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT…

Taking extra shifts at work to increase her income

Making more than the minimum required payment on her debt

Applying for another credit card to use in case she runs out

Reducing spending by canceling some of her streaming

15

It may be more difficult for young people to borrow because they have less payment history for a lender to rely upon

False

True

15

All of the following would show up on a credit report EXCEPT...

Student loan activity

Payment history of your car loan

Salary of your current job

Credit card payment history

15

Which of the following methods of getting your credit score would involve paying a fee?

Checking your credit card or loan statement

Checking creditkarma.com

Talking to a non-profit counselor

Getting a score from myFICO.com

15

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

Check his credit score

Cancel his credit cards

Get a car loan

Make on-time payments

15

Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?

Ask his parents to cosign a credit card or add him as a user

Get a private student loan, even though he doesn't need it

Any time he borrows money from a friend, ay it back promptly

Always say "credit" when asked "credit or debit?" at a store

15

Which of the following individuals or groups would be the LEAST likely to look at your credit score?

A bank rep who is helping you open a savings account

Someone interviewing you for a job

Credit card companies

An insurance company reviewing your applicant for auto insur

15

If Frank has a credit score of 730 and Jason has a score of 600, Frank will likely qualify for a lower interest rate on a car loan

True

False

15

You have a credit card that you use regularly for small purchases with the goal of improving your credit score. Which strategy would have the GREATEST positive impact?

Regardless of how much your balance is, make the min payment

Always carry a balance from month to month

Use less than 30% of the credit limit and pay it off in full

Put the credit card in a drawer instead and don't ever use i

15

What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?

Consolidate multiple debts into one new loan

Make minimum payments

High rate method

Snowball method

15

Who tracks all of your credit information?

Federal government

Consumer Financial Protection Board (CFPB)

Lenders

Credit reporting agencies (Equifax, Experian and TransUnion)

15

What is the general timeline to establish your first credit score?

Six months after you first actively use your credit

Once you turn 18

Once you pay all of your credit balances in full

As soon as you apply for a credit card or loan

15

You find an error on your credit report: Your credit card account indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments. What should you do FIRST?

Contact the credit reporting agency

call the police

Contact the credit card company to have them fix it

Wait a few weeks to see if it gets fixed

15

Which of the following could have a NEGATIVE impact on your credit score if done in a short period of time?

Decreasing your utilization of credit

Applying for multiple credit cards

Paying down balances on your credit card accounts

Paying your bills on-time

15

Which best describes the Debt Snowball method for paying off debt?

Only make payments on your smallest debt first, then move on

Make the min pymts, then put extra toward lowest balance

15