Unit 8 Exam

They can stay on your credit report for up to 7 years

They are the largest factor in your overall credit score

They are an extremely rare occurrence among American credit cardholders

They can drop your credit score by as much as 100 points

Open up a savings account

Pay your credit card bill on time each month

Close as many credit card accounts as you can

Pay off your debts as slowly as possible

You made your student loan payment on time

You bought a $300 prepaid card

ou used your debit card at the grocery store

You checked your credit score on your bank’s mobile app

Developing health problems from the stress of carrying debt

Having your wages reduced by collectors on unpaid debts

Being fired from your job if your employer finds out you have too much debt

Having purchases repossessed (home, vehicle, etc.) for failure to make payments

Sarah has never had a credit card and has over $10,000 in her savings account

Kareem has 3 credit cards that they pay in full every month and recently applied for a new line of credit

Hassan has 3 credit cards with low balances and often forgets which one they need to make payments on and is late

Bekkah has 2 credit cards and they’re usually near their credit limit

They have a federally-mandated maximum APR of 25%

They can come in many forms like high interest rates and excessive fees

They often occur in conjunction with home mortgages

They disproportionately affect communities of color

To automatically increase the credit limit on your revolving credit accounts

To monitor the transactions on your credit card

To improve your credit score through frequent hard inquiries

To identify potential errors or fraudulent activity

A secured credit card is the same as a debit card, drawing money down directly from your checking account

A secured credit card has interest rates far lower than those of a typical credit card

A secured credit card requires the borrower put down a deposit to create their credit limit

A secured credit card cannot be used to shop online, because you have to sign a receipt after every purchase

Late payments will be removed from Theo’s credit report for a fee

The credit bureau has 30 days to resolve any errors in Theo’s credit report

New lenders will double-check Theo’s identity before approving a credit application

Theo will not be able to open new lines of credit for at least 1 year

100

650

850

1000

To prove that you are authorized to work in the United States

To provide a free tool for you to track your finances and budget

To help lenders determine if you are a qualified candidate for credit

To compare the cost of different lines of credit

Utilization will go up because they are increasing their number of cards

Utilization will go up because they are increasing their credit limit

Utilization will go down because they are increasing their number of cards

Utilization will go down because they are increasing their credit limit

You will be denied the loan

You will receive a loan with a high interest rate

You will receive a loan with a low interest rate

You will receive a loan with a low principal

Wages have increased proportional to prices, and debt has remained the same

Wages have increased more than prices, and debt has decreased

Wages have increased less than prices, and debt has increased

Wages and prices have remained the same, and debt has remained the same

A college admissions office

A future employer

A car dealership

An apartment leasing office

a

b

c

d

The mean rent price is higher than the median rent price

10 people reported a rent price of $2750

The median rent price is between $1000 and $1500 per month

The distribution of US rent prices is skewed to the right

A

B

C

D

A

B

C

D