Credit Questions with complete solution 2024/2025 Credit- Wise
When a person declares bankruptcy that fact will appear on the person?s credit report
A: for a 3 year period.
B: for a 10 year period.
C: until the person repays all debts owed.
D: until the person is able to receive a ne...
Credit- Wise
When a person declares bankruptcy that fact will appear on the person?s
credit report
A: for a 3 year period.
B: for a 10 year period.
C: until the person repays all debts owed.
D: until the person is able to receive a new credit card. - correct answer ✔B:
for a 10 year period.
Which of the following is considered to be open-end credit?
A: A mortgage.
B: A car loan.
C: Department store charge cards.
D: Installment loans. - correct answer ✔C: Department store charge cards.
When a person brings an item to a pawnshop to obtain cash, the transaction
is considered
A: a collateralized loan.
B: a custodial payment.
C: an unsecured loan.
D: a sales agreement. - correct answer ✔A: a collateralized loan.
, A person has three credit cards with very large outstanding balances and is
unable to make payments on any of them. Which action should the person
take?
A: Notify a credit reporting agency in order to avoid a late fee.
B: File for bankruptcy in order to maintain ones current credit score.
C: Notify the credit card companies in order to negotiate a new payment plan.
D: Contact the Internal Revenue Service in order to avoid paying income tax
this year. - correct answer ✔C: Notify the credit card companies in order to
negotiate a new payment plan.
To qualify for a Federal Housing Administration (FHA) loan, a person must
generally
A: have at least a high school diploma.
B: have one-quarter of the cost of the home for a down-payment.
C: fulfill income guidelines.
D: provide two individuals to co-sign the loan. - correct answer ✔C: fulfill
income guidelines.
What is meant by an uncollateralized loan?
A: A loan not backed by a co-signer who agrees to cover the amount of the
loan.
B: A personal loan without assets to cover the loan amount.
C: A home equity loan.
D: A loan taken on a life insurance policy. - correct answer ✔B: A personal
loan without assets to cover the loan amount.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller flyhigher329. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
