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1.
Opening several new credit accounts in a short period of time can result in an improved credit score.
Choose wisely. There is only one correct answer.
False. Opening several new credit accounts in a short period of time can result in a lowered credit score.
2.
Under the Fair Credit Reporting Act, you can be exempted from direct mail solicitations that are based on lists obtained from credit bureaus.
Choose wisely. There is only one correct answer.
True. You have the right to not be included in them.
3.
Advertisements that state "Bad or no credit is no problem with us" _______.
Choose wisely. There is only one correct answer.
May be a warning of a predatory lending practice. Be leery of "Bad or no credit is no problem with us" offers.
4.
In the language of credit, capital refers to assets that can be used as collateral.
Choose wisely. There is only one correct answer.
True. Your creditors will want to know that you have capital; it makes you look less risky.
5.
Paying on credit is cheaper than buying outright because you make smaller monthly payments than one large payment.
Choose wisely. There is only one correct answer.
False. Paying on credit is more expensive due to the buildup of interest.
6.
Having no credit profile can result in you being denied credit.
Choose wisely. There is only one correct answer.
True. Creditors like to know that you have a history of using credit.
7.
A creditor is a person who borrows money.
Choose wisely. There is only one correct answer.
False. A creditor is a person who lends money; a debtor borrows money.