HUD Exam Questions and Answers 100% Correct(GRADED A+)

Telephone Customer Services: - ANSWER-Assistance provided by the financial institution over the phone to help customers with banking complications. Mobile Banking: - ANSWER-Allows clients to utilize banking services with mobile technology. Services often included in mobile banking include a view of up-to-date transactions, fund transfers, or remote check deposits. Overdraft Fee - ANSWER-Fee charged when an account does not have enough money to cover a purchase and the financial institution loans money to complete the payment. This creates a negative loan to repay, and interest will be charged on the balance. Portion of score based on the number of recent credit inquiries, as well as new credit - ANSWER-10% New Credit Negative type of credit used: - ANSWER-Fewer types of credit show limited profile information to lenders, which means a higher risk Tracking income - ANSWER-• Regular salary • Temporary jobs • Unemployment compensation • Public assistance In the budget, do not include. - ANSWER-• Pre-tax payroll deductions—Retirement fund contributions and expenses like Flexible Spending Account Credit score Credit reports can be useful with budgeting - T/F - ANSWER-True items to use when budgeting - ANSWER-- Paychecks, direct deposit slips • If self-employed, income and expenses sheet • Additional income checks or cash • Government benefits letters (SSI, unemployment, etc.) Documents to use when budgeting - ANSWER-Utility, insurance, and other bills • Bank statements • Credit card statements • --Records about car registration or school supplies for estimated amount of expected periodic expense A credit report contains information - ANSWER-• History of accounts. • Number of inquiries. • Number of collections. credit report overview - ANSWER-1. Personal Information 2. Account/Trade Line Information 3. Public Records 4. Inquiries 5. Consumer Rights personal information on credit info - ANSWER-Consumer identification information, including name, social security number, addresses, phone numbers, and employers Account/Trade Line Information on credit info - ANSWER-Information about each consumer credit account, including payment history, account dates, credit limits, and balances owed Public Records on credit info - ANSWER-Items that are listed in the public record, including bankruptcy, judgments, tax liens, and wage garnishments Inquiries on credit info - ANSWER-Requests initiated by a company or person for a consumer's credit profile information Consumer Rights on credit info - ANSWER-Information about consumer rights and protection for reference (included in credit reports from the major credit reporting agencies, but not in most tri-merge reports) Positive capacity: - ANSWER-Low credit utilization demonstrates good financial management. negative capacity for credit - ANSWER-High credit card balances demonstrate poor financial management (i.e., client needs more access to credit). negative example of payment history - ANSWER-Lien, judgment, collection account, charge-off account, repossession, bankruptcy Length of Credit History Positive - ANSWER-Longer credit history provides more information for lenders, which means lower risk.