UGBA 135 CORE MAIN EXAMS SET QUESTIONS
AND ANSWERS SURE A+
✔✔What do you do if you have fallen victim to credit card theft? - ✔✔- call bank
immediately
- in the first 2 days - only liable for $50 losses
- after 2 days - liable to up to $500
- after 60 days, liable for everything
✔✔What do if you have fallen victim to credit card theft? - ✔✔contact issuer or bank
immediately
- if you call within 2 days limited to $50 of losses
- if you call beyond 2 liable for up to $500 losses
- if you call after 60 days - fully liable
✔✔What is bankruptcy? - ✔✔-It can negatively impact your credit score for up to 10
years, does not relieve you of obligations for taxes, alimony, child support or student
loans
✔✔Who does the Card Act apply to? - ✔✔Only to consumers credit cards and NOT to
business credit cards
✔✔What are the 3 credit reporting agencies - ✔✔- transunion
- equifax
- experian
✔✔What is a credit report? - ✔✔An individual financial report which tells you whether
you have been making your credit card/loan payments on time and includes personal
information
✔✔What is a credit score? - ✔✔This determined by credit report but it NOT located - in
order to change this number, you must have an improved credit report
,✔✔What is a FICO score? - ✔✔A number used by lenders to determine if you are a
good or bad credit risk based upon the delinquency and default rate or a large number
of people with credit history similar to yours
✔✔What information is included on a credit report? - ✔✔employment history, law suits,
judgments, arrests, DUIs, bankruptcies and all loans
✔✔what is a voluntary request? - ✔✔document? authorized by you so that a lender,
landlord, employer (with written permission) can legally get a copy of your credit score
✔✔what is an involuntary request? - ✔✔Document? from lenders that re trying to solicit
you by mail fro pre approved credit offer
✔✔Info on accessing credit cards - ✔✔legally entitles to one free copy of your report
each year from each of the three major bureaus
✔✔what is the federally mandated website for free credit reports? -
✔✔www.annualcreditreport.com
✔✔What is the FICO formula? - ✔✔35% record of paying bills on time - for a significant
period of time
30% debt to credit ration - which is the total balance on your credit
15% length of credit history
10% new accounts and recent applications for credit cards and loans
✔✔What is the best FICO score can be? - ✔✔780 - 850
✔✔What is the lowest FICO score? - ✔✔620 - 660
✔✔What % of credit reports have serious errors - ✔✔- 25%
✔✔What are methods of identity theft? - ✔✔theft from purse or wallet, phishing (via
email or phone) adn hacking
✔✔What to do if your methods of identity theft - ✔✔immediately contact the three major
credit bureaus and put a fraud alert contact
✔✔Does the IRS contact you? - ✔✔no
✔✔What are some FICO score improvement methods? - ✔✔pay bills on time - for a
significant period of time
keep your debts to credit ratio near 30%
Avoid DUIs
, ✔✔What is your debt to credit ratio? - ✔✔total balance on your credit cards and other
loans compared to your total credit limit
having one near 30% is good
✔✔Are social security benefits taxable? - ✔✔Yes, 85% of them are
✔✔How much do seniors take from what they put into their social security? - ✔✔about 6
times what they put in
✔✔what percentage of all the money the federal government currently budgets for
senior citizens - ✔✔42%
✔✔what are the eligibility requirements for social security benefits - ✔✔40 quarters (10
years) earning at least $1,320 per quarter at 66 years can receive full benefits
regardless of income
✔✔What are the contributions to social security? - ✔✔employer and employee share
equally in the program - the employers contributions are tax deductible - the employers
are not
✔✔what is the contribution rate to social security - ✔✔12.4% - of all earned income,
6.2% by employee and 6.2% by employer -
✔✔Is there social security taxes on earned income? - ✔✔no, not on interest, dividends
or capital gains
✔✔what was social security designed to fo? - ✔✔supplement a persons own pension
plan and lifetime savings
✔✔Facts to know about Social Security - ✔✔no means test for SS
you do not need to be poor to receive a benefit
Pay as you go plan - so as costs rise taxes must also rise
✔✔What is Part A of Medicare? - ✔✔currently free to seniors who apply financed by a
2.9% payroll tax on all earned income paid by all workers with NO salary cap
1.45% payed by employee - 1.45% paid by employer
This part has deductibles
✔✔What is part B of medicare? - ✔✔this part is optional and means tested
has deductibles
receive monthly premiums
✔✔What is part D of medicare? - ✔✔it is optional and means tested
AND ANSWERS SURE A+
✔✔What do you do if you have fallen victim to credit card theft? - ✔✔- call bank
immediately
- in the first 2 days - only liable for $50 losses
- after 2 days - liable to up to $500
- after 60 days, liable for everything
✔✔What do if you have fallen victim to credit card theft? - ✔✔contact issuer or bank
immediately
- if you call within 2 days limited to $50 of losses
- if you call beyond 2 liable for up to $500 losses
- if you call after 60 days - fully liable
✔✔What is bankruptcy? - ✔✔-It can negatively impact your credit score for up to 10
years, does not relieve you of obligations for taxes, alimony, child support or student
loans
✔✔Who does the Card Act apply to? - ✔✔Only to consumers credit cards and NOT to
business credit cards
✔✔What are the 3 credit reporting agencies - ✔✔- transunion
- equifax
- experian
✔✔What is a credit report? - ✔✔An individual financial report which tells you whether
you have been making your credit card/loan payments on time and includes personal
information
✔✔What is a credit score? - ✔✔This determined by credit report but it NOT located - in
order to change this number, you must have an improved credit report
,✔✔What is a FICO score? - ✔✔A number used by lenders to determine if you are a
good or bad credit risk based upon the delinquency and default rate or a large number
of people with credit history similar to yours
✔✔What information is included on a credit report? - ✔✔employment history, law suits,
judgments, arrests, DUIs, bankruptcies and all loans
✔✔what is a voluntary request? - ✔✔document? authorized by you so that a lender,
landlord, employer (with written permission) can legally get a copy of your credit score
✔✔what is an involuntary request? - ✔✔Document? from lenders that re trying to solicit
you by mail fro pre approved credit offer
✔✔Info on accessing credit cards - ✔✔legally entitles to one free copy of your report
each year from each of the three major bureaus
✔✔what is the federally mandated website for free credit reports? -
✔✔www.annualcreditreport.com
✔✔What is the FICO formula? - ✔✔35% record of paying bills on time - for a significant
period of time
30% debt to credit ration - which is the total balance on your credit
15% length of credit history
10% new accounts and recent applications for credit cards and loans
✔✔What is the best FICO score can be? - ✔✔780 - 850
✔✔What is the lowest FICO score? - ✔✔620 - 660
✔✔What % of credit reports have serious errors - ✔✔- 25%
✔✔What are methods of identity theft? - ✔✔theft from purse or wallet, phishing (via
email or phone) adn hacking
✔✔What to do if your methods of identity theft - ✔✔immediately contact the three major
credit bureaus and put a fraud alert contact
✔✔Does the IRS contact you? - ✔✔no
✔✔What are some FICO score improvement methods? - ✔✔pay bills on time - for a
significant period of time
keep your debts to credit ratio near 30%
Avoid DUIs
, ✔✔What is your debt to credit ratio? - ✔✔total balance on your credit cards and other
loans compared to your total credit limit
having one near 30% is good
✔✔Are social security benefits taxable? - ✔✔Yes, 85% of them are
✔✔How much do seniors take from what they put into their social security? - ✔✔about 6
times what they put in
✔✔what percentage of all the money the federal government currently budgets for
senior citizens - ✔✔42%
✔✔what are the eligibility requirements for social security benefits - ✔✔40 quarters (10
years) earning at least $1,320 per quarter at 66 years can receive full benefits
regardless of income
✔✔What are the contributions to social security? - ✔✔employer and employee share
equally in the program - the employers contributions are tax deductible - the employers
are not
✔✔what is the contribution rate to social security - ✔✔12.4% - of all earned income,
6.2% by employee and 6.2% by employer -
✔✔Is there social security taxes on earned income? - ✔✔no, not on interest, dividends
or capital gains
✔✔what was social security designed to fo? - ✔✔supplement a persons own pension
plan and lifetime savings
✔✔Facts to know about Social Security - ✔✔no means test for SS
you do not need to be poor to receive a benefit
Pay as you go plan - so as costs rise taxes must also rise
✔✔What is Part A of Medicare? - ✔✔currently free to seniors who apply financed by a
2.9% payroll tax on all earned income paid by all workers with NO salary cap
1.45% payed by employee - 1.45% paid by employer
This part has deductibles
✔✔What is part B of medicare? - ✔✔this part is optional and means tested
has deductibles
receive monthly premiums
✔✔What is part D of medicare? - ✔✔it is optional and means tested
