Home > Basics > Beginner
Basics Beginner: Credit

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The Truth in Lending Law requires that a lender disclose _______.
Choose wisely. There is only one correct answer.
Both finances charges and APR. The cost of credit must be disclosed in two ways, as finance charges and Annual Percentage Rate (APR).
2.
Which of the following is the largest determiner of your FICO score?
Choose wisely. There is only one correct answer.
Payment history. Your payment history carries more weight than any other measure.
3.
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.
4.
To get a free credit report after you have been denied credit, you must do so within _______ days.
Choose wisely. There is only one correct answer.
60. The limit is 60 days.
5.
An example of revolving credit is a(n) _______.
Choose wisely. There is only one correct answer.
Credit card agreement. Credit card agreements are an example of revolving credit.
6.
When creditors check a borrower's capacity, capital, and character to determine creditworthiness, they are using _______.
Choose wisely. There is only one correct answer.
The three Cs. A creditor usually looks at three factors, known as the "the three Cs": capacity, capital, and character.
7.
When buying with credit, you must pay back the borrowed amount along with interest and possibly _______.
Choose wisely. There is only one correct answer.
Finance charges. Finance charges may also be levied.