Terms in this set (158)
Payment history and outstanding debts
What two factors count for
65% of your FICO score?
Fair Isaac Corporation
Which company has
developed the MOST
commonly used credit score
to evaluate an individual's
credit?
760
You should try to achieve a
FICO score of at least
________ in order to receive
a top credit rating.
70%, and decreasing this ratio will help the credit score
What is the debt to credit limit
ratio for the following
individual?Visa Card Master
Card Credit Limit $10,000
$20,000 Balance Due $2,000
$19,000 Available
Credit$8,000$1,000
TRUE
It is possible that canceling an
old credit card with no
balance due could hurt your
credit score.
TRUE
If an individual gets several
quotes on a new mortgage
within a two week period, it
should not immediately
impact their credit score. The
credit score may later be
impacted by the size of the
mortgage and related monthly
payments.
Apply in the name of the spouse with the highest score
, The treasury yield curve is normally upward sloping, with
Which of the following long term rates being higher than short term rates.
statements is true?
True
Having mortgage debt is
generally considered better
than having credit card debt.
False
It is illegal for an employer to
review your credit report as
part of the application
process.
False
Assume you have three credit
cards, each having a balance
due of $500 for a total of
$1,500. Each card has a
different interest rate ranging
from 12% to 20%. The
minimum payment on each
card is $10. If the minimum
payment is not made, there is
a $50 penalty.If you only have
$500 to pay on your credit
cards this month, the best way
to minimize your interest cost
is to pay an equal amount of
money on each card.
True
Insurance companies are
allowed to review and
consider your credit score
before quoting a premium.
True
In general, applying for and
receiving new credit cards
will tend to decrease your
FICO score.
False
, The 10 year treasury note rate
Interest rates on 30 year fixed
rate mortgages tend to follow
or correlate with:
The treasury yield curve
Interest rates paid by
corporations and individual
are normally derived from the
current:
Decrease your payment and increase the amount of interest
At a given interest rate, paid over the loan
extending the term of your
auto loan from 36 months to
60 months will:
Is generally upward sloping, with short term interest rates
being lower than long term interest rates
Interest rates for corporations
and individuals are set based
on the Treasury Yield Curve
on any given day. The curve
represents the cost of
borrowing for the federal
government, and
Increase
If we experience a rapid
increase in inflation, the
Federal Reserve would likely
________ interest rates.
Invest in a short term CD and roll it over as it expires to
another short term CD
In the event that you had
$10,000 to invest in a bank
Certificate of Deposit (CD),
what would be your best
course of action in the event
that you believed interest rates
were likely to increase in the
coming years?
False
Borrowing on your 401-K
plan is generally considered a
good financial move.
True
You should always shop for a
Payment history and outstanding debts
What two factors count for
65% of your FICO score?
Fair Isaac Corporation
Which company has
developed the MOST
commonly used credit score
to evaluate an individual's
credit?
760
You should try to achieve a
FICO score of at least
________ in order to receive
a top credit rating.
70%, and decreasing this ratio will help the credit score
What is the debt to credit limit
ratio for the following
individual?Visa Card Master
Card Credit Limit $10,000
$20,000 Balance Due $2,000
$19,000 Available
Credit$8,000$1,000
TRUE
It is possible that canceling an
old credit card with no
balance due could hurt your
credit score.
TRUE
If an individual gets several
quotes on a new mortgage
within a two week period, it
should not immediately
impact their credit score. The
credit score may later be
impacted by the size of the
mortgage and related monthly
payments.
Apply in the name of the spouse with the highest score
, The treasury yield curve is normally upward sloping, with
Which of the following long term rates being higher than short term rates.
statements is true?
True
Having mortgage debt is
generally considered better
than having credit card debt.
False
It is illegal for an employer to
review your credit report as
part of the application
process.
False
Assume you have three credit
cards, each having a balance
due of $500 for a total of
$1,500. Each card has a
different interest rate ranging
from 12% to 20%. The
minimum payment on each
card is $10. If the minimum
payment is not made, there is
a $50 penalty.If you only have
$500 to pay on your credit
cards this month, the best way
to minimize your interest cost
is to pay an equal amount of
money on each card.
True
Insurance companies are
allowed to review and
consider your credit score
before quoting a premium.
True
In general, applying for and
receiving new credit cards
will tend to decrease your
FICO score.
False
, The 10 year treasury note rate
Interest rates on 30 year fixed
rate mortgages tend to follow
or correlate with:
The treasury yield curve
Interest rates paid by
corporations and individual
are normally derived from the
current:
Decrease your payment and increase the amount of interest
At a given interest rate, paid over the loan
extending the term of your
auto loan from 36 months to
60 months will:
Is generally upward sloping, with short term interest rates
being lower than long term interest rates
Interest rates for corporations
and individuals are set based
on the Treasury Yield Curve
on any given day. The curve
represents the cost of
borrowing for the federal
government, and
Increase
If we experience a rapid
increase in inflation, the
Federal Reserve would likely
________ interest rates.
Invest in a short term CD and roll it over as it expires to
another short term CD
In the event that you had
$10,000 to invest in a bank
Certificate of Deposit (CD),
what would be your best
course of action in the event
that you believed interest rates
were likely to increase in the
coming years?
False
Borrowing on your 401-K
plan is generally considered a
good financial move.
True
You should always shop for a
