What will likely happen if Terry Ann fails to make a payment on her secured credit card?
The bank or credit union may cancel the card
. The bank or credit union will deduct any fees directly from Terry Ann’s account. The bank or credit union will deduct the payment directly from Terry Ann’s account.
Which of the following negative financial behaviors will stay on your credit report the longest group of answer choices?
Which of the following negative financial behaviors will stay on your credit report the longest?
Declaring bankruptcy
.
Which of the following is most likely to represent a fixed rate secured debt?
What is most likely to represent a fixed rate, secured debt?
An auto loan
.
Which of the following is considered to be a disadvantage of credit?
A disadvantage to credit cards is that
there is no way to keep track of individual expenditures
. Advantages of using credit include the ability to make purchases when cash inflow is low and the convenience of not carrying cash or checks. Credit cards can eliminate the need for carrying large amounts of cash.
How many times per year can you request a free copy of your credit report from each of the primary credit bureaus quizlet?
A: You can get
one free credit report every twelve months
from each of the nationwide credit bureaus—Equifax, Experian, and TransUnion—by visiting www.annualcreditreport.com or calling (877) 322-8228.
Is it true that after 7 years your credit is clear?
Most negative information generally stays on credit reports
for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
What is a 609 letter?
A 609 Dispute Letter is often billed as
a credit repair secret or legal loophole that forces
the credit reporting agencies to remove certain negative information from your credit reports. And if you’re willing, you can spend big bucks on templates for these magical dispute letters.
Are student loans secured or unsecured?
Most educational loans are
unsecured loans
. Small personal loans are also usually unsecured. If you obtain an unsecured loan from the government, you will likely be assigned an interest rate set by Congress during that time.
What is a bad debt give two examples?
Bad Debt Examples.
Owing money on your credit card
is one of the most common types of bad debt. Credit cards are issued by lenders and allow you to make purchases on credit. These cards can come with high interest rates (often with a rate of more than 20%) and can get out of hand quickly.
What risks do you undertake by being in debt?
High debt can drive a low credit score
. A low credit score impacts your ability to get a low rate on loans. Paying higher interest on loans impacts your available cash flow. Having bad credit can also affect your ability to get a job or your ability to rent an apartment or home.
What are 3 advantages of using credit?
- Save on interest and fees. …
- Manage your cash flow. …
- Avoid utility deposits. …
- Better credit card rewards. …
- Emergency fund backup plan. …
- Avoid and limit financial fraud. …
- Purchase and travel protections. …
- Don’t underestimate the power of good credit.
What are 3 disadvantages of credit?
- Paying high rates of interest. If you carry a balance from month-to-month, you’ll pay interest charges. …
- Credit damage. …
- Credit card fraud. …
- Cash advance fees and rates. …
- Annual fees. …
- Credit card surcharges. …
- Other fees can quickly add up. …
- Overspending.
What are the 7 types of credit?
- Banks. Banks are financial institutions where people and organisations can borrow and invest money. …
- Supermarkets and department stores. …
- Credit unions. …
- Pay day loan companies. …
- Businesses offering hire purchase agreements. …
- Logbook lenders. …
- Peer-to-peer lenders. …
- Paying off the debt.
What are 5 examples of people or organizations who can request to see your credit report?
- Creditors and potential creditors (including credit card issuers and car loan lenders). …
- Mortgage lenders. …
- Landlords. …
- Utility companies. …
- Student loan lenders. …
- Insurance companies. …
- Car insurance companies. …
- Employers.
Do lenders use credit karma scores?
More than 90% of lenders prefer the FICO scoring model, but
Credit Karma uses the Vantage 3.0 scoring model
. … Overall, your Credit Karma score is an accurate metric that will help you monitor your credit — but it might not match the FICO scores a lender looks at before giving you a loan.
Which credit report is most accurate?
FICO scores are used in over 90% of lending decisions making
the FICO® Basic, Advanced and Premier
services the most accurate for credit score updates. All plans offer access to 28 versions of your FICO score, including scores for credit cards, mortgages and auto loans.
