Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Financial Managment 1 > Ch 6 > Flashcards

Ch 6 Flashcards

1
Q

You need to take out a credit card or car loan to ______

A

Build up your credit score

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The ____ score is an…..______ debt

A

Fico, I love you

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Account information is removed from your credit report __ years after the last activity on the account except for a chapter 7 bankruptcy, which stays for how many years?

A

7, 10

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The only information that may be legally removed from a credit report is ___ information

A

Inaccurate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

___% of those credit reports contained mistake.

A

79

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

___% of them contained errors serious enough to result i the denial of credit

A

25

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

__% of the credit reports contained credit accounts that’s been closed by the consumer

A

30

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

__% listed the same mortgage or loan twice

A

22

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Three credit bureaus are..

A

Experian, transunion, and equifax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Identity theft is the fastest growing ____ ____ crime in North America today

A

White collar

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Identity theft 1.)

Place a ___ ___ alert on your credit bureau report

A

Fraud victim

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Identity theft 2.)

Get a _____ ____.

A

Police report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Identity theft 3.)

Remember, this is ____. You owe ____ and should pay _____.

A

Theft, nothing, nothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Identity theft 4.) contact the _____ ____ division of each creditor and furnish ____

A

Fraud victim, documentation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Be ____, this will take some time. You now have a new ___.

A

Persistent, hobby

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

To clean your credit report for inaccurate information, take the following steps:
Number 1

A
  1. Write a separate letter for each inaccurancy.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

To clean your credit report for inaccurate information, take the following steps:
Number 2

A

Staple a copy of your credit report to each letter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

To clean your credit report for inaccurate information, take the following steps:
Number 3

A

Circle the account number

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The best way to pay debt is with a ____.

A

Plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A collectors job is not to help your overall situation. His only job is to get your ____.

A

Money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Collectors are trained ______ _____ or _____.

A

Sales people, telemarketers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

They are typically low paid positions with high ____.

A

Turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

They are taught in their training to evoke strong _____.

A

Emotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

ALWAYS pay ______ first, and then you set the order of payment.

A

Necessities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Always set your priorities by the four walls:

A
  1. Food
  2. Shelter
  3. Clothing
  4. Transportation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

The act states that ____ is illegal and restricts a collectors call between __ and ___

A

Harassment, 8 am & 9 pm

27
Q

The federal fair debt collection practices act allows you to demand that a creditor cease calling you at ___. You should request this in writing by ___ ___ with return receipt requested.

A

Work, certified mail

28
Q

The act even allows you to insist that a creditor stops ___ ___ except to notify you of ____ proceedings. That’s called a ___ and ____ letter.

A

All contact, lawsuit, cease-and-desist

29
Q

Don’t use a cease and desist letter except in horrible situations, because all ______ ____ and any hope of a positive resolution is lost.

A

Negotiations stop

30
Q

No collector or creditor may ___ _ ___ _____ or _____ wages without proper and lengthy court action

A

Take a bank account or garnish

31
Q

Your plan should include as much ______ ________ of debt as possible, but ___ must set your _____ of repayment.

A

Prompt repayment, YOU, priorities

32
Q

DO NOT let a collector use your ___ ____ as a paper club

A

Credit report

33
Q

When your unable to pay the minimum payments use the ___ ____ plan

A

Pro ratio

34
Q

Eventually if your making no payments and have cut no deals , what will happen?

A

You will get sued

35
Q

Lawsuits for under $10,000 are filed in…

A

General sessions court

36
Q

Before your sued you will be given ___ days notice of court date

A

10

37
Q

If the debt is valid and even if you fight, you will still

A

Lose

38
Q

If you can’t reach an agreement, you can file with the court a “_____ ____” motion called a paupers oath

A

Slow pay

39
Q

Three ideas to keep in mind:

A
  • of you’re going to settle, get it in writing
  • never give electronic access to your checking account
  • never give post-dated checks
40
Q

Gives creditors a fair share

A

Pro rata

41
Q

“I love debt” score

A

Fico score

42
Q

Using another persons information to obtain goods or services

A

Identity theft

43
Q

TransUnion

A

Credit bureau

44
Q

Court order allowing a lender to take money directly from the debtors paycheck

A

Garnishment

45
Q

Trained salespeople or telemarketers

A

Collectors

46
Q

Food, shelter, transportation and clothing

A

Four wall

47
Q

You should always pay the collectors first

T or F

A

F, always pay for necessities first

48
Q

The best way to deal with debt is with a plan

T or F

A

T

49
Q

The federal fair debt collection practices act allows creditors to call between 7 am and 10 pm
T or F

A

F, between 8 am and 9 pm

50
Q

If you are a victim of identity theft, you are only responsible for the first $250 of debt
T or F

A

F, None of the debt

51
Q

You should check your credit report every year

T or F

A

T

52
Q 
Passed in 1977 to protect you from unfair collectors:
A. FDIC 
B. FHA 
C. FFDCPA
D. FFCRW
A

C. FFDCPA

53
Q 
Which of the following is one of the four walls:
A. Cable
B. mortgage payment
C. Cell phone bill
D. Designer jeans
A

B. mortgage payment

54
Q 
It is a good idea to check your credit report:
A. Every 6 months
B. every 3 years
C. Every year
D. Every 5 years
A

C. Every year

55
Q 
Which of the following tactics are collectors likely to use?
A. Lying
B. harassment
C. Being friendly
D. All the above
A

D. All the above

56
Q 
Which of the following is not a way to build your FICO score?
A. Pay cash for all purchases
B. get a personal loan from the bank
C. Sign up and use credit cards
D. All the above
A

A. Pay cash for all purchases

57
Q 
Which piece of information, if stolen, is not likely to lead to identity theft?
A. Drivers license
B. phone number
C. Credit card number
D. Social security number
A

B. phone number

58
Q

The pro rata payment includes which of the following elements:
A. Repayment of debt as soon as possible
B. using the four walls to set priorities
C. Giving a percentage of debt to each creditor
D. All the above

A

D. All the above

59
Q 
The fastest growing group of people filing for bankruptcy are:
A. Under 25
B. 25-30
C. 30-45
D. Senior citizens
A

A. Under 25

60
Q

Whats the best way to deal with collectors?

A

Send a letter so they stop or pay them what you owe

61
Q

List some precautions to take to help safeguard against identity theft

A

Don’t give out SS #, shred information, and cancel credit card if stolen

62
Q

Describe some common tactics used by collectors. Why do they use these?

A

Emotion, fear, anger

63
Q

Refute the myth “I need to build my credit score”

A

If you buy things with cash you only need credit score for a loan

Financial Managment 1 (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions