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Basics Beginner: Credit

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1.
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.
2.
When getting a debt consolidation loan, you can reduce your interest rates by _______.
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Putting up collateral. Putting up collateral reduces the risk that your creditor takes on, thus qualifying you for a lower interest rate.
3.
Which of the following is the largest determiner of your FICO score?
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Payment history. Your payment history carries more weight than any other measure.
4.
When creditors check a borrower's capacity, capital, and character to determine creditworthiness, they are using _______.
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The three Cs. A creditor usually looks at three factors, known as the "the three Cs": capacity, capital, and character.
5.
An example of revolving credit is a(n) _______.
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Credit card agreement. Credit card agreements are an example of revolving credit.
6.
Credit abuses increase the cost of credit to _______.
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All of the above. Credit abuse increases the cost of credit to everyone.
7.
Under the Fair Credit Reporting Act, you can be exempted from direct mail solicitations that are based on lists obtained from credit bureaus.
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True. You have the right to not be included in them.