WISE PRACTICE TEST CREDIT NEW UPDATE
2023 100% PASSED SOLUTION
When a person declares bankruptcy that fact will appear on the person?s credit
report - Ans - B: for a 10 year period.
uestion 2 :
A person has three credit cards with very large outstanding balances and is unable
to make payments on any of them. Which action should the person take? - Ans - C:
Notify the credit card companies in order to negotiate a new payment plan.
Question 3 : Which of the following is considered to be open-end credit? - Ans - C:
Department store charge cards.
Question 4 : To qualify for a Federal Housing Administration (FHA) loan, a person
must generally - Ans - Correct Answer : C: fulfill income guidelines.
Question 5 : What is meant by an uncollateralized loan? - Ans - Correct Answer : B:
A personal loan without assets to cover the loan amount.
Question 6 : When a person brings an item to a pawnshop to obtain cash, the
transaction is considered - Ans - Correct Answer : A: a collateralized loan.
Question 7 : Victims of predatory lending practices are typically: - Ans - Correct
Answer : C: The elderly and people with a poor credit history
Question 8 : A good practice when using credit cards is to routinely - Ans - Correct
Answer : C: pay the complete balance each month.
Question 9 : Jane opened her credit card bill and was surprised by the amount she
owed. She cannot pay the full amount of the bill this month. The lowest dollar
amount Jane is required to pay by the credit card company is the: - Ans - Correct
Answer : C: Minimum payment
Question 10 : Josh is shopping for a car loan. A friend told him to compare the actual
cost of the loan for one year expressed as a percentage from three banks. He needs
to ask for the: - Ans - Correct Answer : B: Annual percentage rate (APR)
The decision to give an applicant credit is made a: - Ans - Correct Answer : C:
Creditor
Question 9 : You are behind on your debt payments and go to a responsible credit
counseling service, the Consumer Credit Counseling Services. How can they help
you? - Ans - Correct Answer : D: They can work with those who loaned you money
to set up a repayment schedule you can afford to make.
Question 8 : Maxine has an auto loan that she has to pay. She will make monthly
payments over five years. She has a(an): - Ans - Correct Answer : D: Installment
loan
