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.
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.
2.
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).
3.
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.
4.
Credit abuses increase the cost of credit to _______.
Choose wisely. There is only one correct answer.
All of the above. Credit abuse increases the cost of credit to everyone.
5.
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.
6.
Which law gives a consumer the right to have a credit report item dispute resolved within 30 days?
Choose wisely. There is only one correct answer.
Fair Credit Reporting Act. The FCRA gives consumers the right to have disputed information investigated and reported back to them within 30 days.
7.
What is the minimum FICO score that is usually considered a safe risk?
Choose wisely. There is only one correct answer.
670. At 670, a person is considered a safe risk and typically receives a loan without a problem and at a low interest rate.