UGBA 135 Final Exam 2023 Questions and Answers 100% Verified;These are acual quiz
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UGBA
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UGBA
UGBA 135 Final Exam 2023 Questions and Answers 100% Verified;These are acual quiz
What is the biggest problem facing us in the future?
Longevity, not retirement
Where is the burden of saving and investing for retirement and health care shifting?
From employer to employee
What percentage of h...
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UGBA 135 Final Exam 2023 Questions and Answers 100%
Verified;These are acual quiz
What is the biggest problem facing us in the future?
Longevity, not retirement
Where is the burden of saving and investing for retirement and health care
shifting?
From employer to employee
What percentage of households have income of more than $113,000?
10%
What percentage of households earn $160,000?
5%
What is a common trait of millionaires?
The ability to communicate and sell their ideas
Where can the lender not take out money from if you don't pay them back?
Your bank account or your assets (excepting if your credit card is the same bank as
your checking or savings account)
What is a credit hold?
When a hotel, car dealer, etc. put extra charges on your card to cover and damages or
other purchases you make, and is released in a few days after
What is the average credit card monthly balance of an American household?
Over $9,000
Why do merchants like debit cards over credit cards?
The interchange fees for debit cards are about one-third of the fees for credit cards
Why do banks like debit cards over credit cards?
The money is in the account so they take no risk on you
What is the difference in fraud reimbursements between credit and debit?
Credit is reimbursed in a few days; Debit can take up to 2 - 3 months
What is a charge card?
A retailer card that can only be used at that store, often coming with discounts but high
rates of interest
Are prepaid cards limited by most credit card restrictions?
No
What is a payday loan?
A high interest short term cash loan intended to be repaid by future paychecks
What is installment debt?
Money borrowed to purchase large items, paying for them over time (usually monthly -
earlier payments pay off mostly interest, later payments pay off mostly principal)
What is a deferred interest plan?
A plan that enables consumer to purchase big-ticket items paying no or low interest
over a promotional period
What are downsides of a deferred interest plan?
If you don't pay off the entire balance by the end of the period, or are late 60 days in
your payments, you may be retroactively charged interest on the balance during the
promotion
,What are expiration dates for gift cards?
Either eliminated or no fewer than five years
What rates is your credit card rate of interest composed of? Which is based on
your credit score?
The go-to rate and the variable rate - the go-to rate is based on your credit score
What is the default rate?
The accelerated rate of interest (28% - 35%) charged as a penalty if:
The issuer did not receive minimum payment by due date
Payment is not honored by the bank
What is universal default?
The ability of a lender to change terms of loan upon learning the customer has
defaulted/missed a loan payment to another lender
When should credit card payments be made?
Online - 2 days prior
Mail - 5 days prior
Should mail be received or postmarked by the due date?
Received
If you pay above minimum, should you apply it to the principal or the interest?
Principal
What are loss limits in credit card theft?
$50 if contact in 2 days, $500 if contact within 60 days
What does bankruptcy not relieve you of?
Alimony, child support, student loans
What does the Card Act apply to?
Consumer credit cards, not business credit cards
When can an issuer raise credit card interest rates on a new account?
After 12 months after opening
When an introductory rate has come to an end
60 days late with a payment
How do you restore your original rate after being late and receiving the default
rate?
By making payments on time for six consecutive months
Can an unused credit hold cause overdraft charges?
No
What is the legal limit on interest rates on outstanding balances?
None
When do statements have to be mailed?
21 days prior to due date
What are credit card issuers not allowed to do on campuses?
Solicit students and offer gifts/incentives for completing an application
Where do payments in excess of the minimum get applied - the balance with the
highest interest or the greatest balance?
, The balance with the highest interest
What's the limit on the late payment fee on a credit card?
$25 unless one of last six payments was late, then up to $35, OR your minimum
payment, whichever is smaller
What are the three major credit reporting agencies?
Transunion, Equifax, Experian
What is the length of time a credit report covers?
7-10 years
Do employers have to get your written permission to get a credit check as part of
the hiring process?
Yes
What are the two biggest factors in determining your FICO score?
Record of paying bills on time over time
Debt-to-credit ratio
What is the minimum criteria required for a credit score?
Six months of history, including at least one account open and that has been reported
by a lender, and no indication of death
What is considered a good credit score?
720-779
What is considered the best credit score?
780-850
Do FICO scores account for age, race sex, marital status, where you live,
occupation, or salary?
No
Do FICO scores account for medical debts?
No
Is the credit score on the credit report?
No - the credit report is used to generate your credit score
How do you correct an error on your credit report?
Call the customer service department of the business which reported the problem
What do you do in the case of identity theft?
Contact the three major credit bureaus and put a "fraud alert" on your account
Close all of your accounts and reopen new accounts
File a police report
How does the IRS contact you?
Through mail, NOT through email or phone
What is a security freeze?
A technique to deny access to your credit information so creditors cannot approve the
request, done by individually contacting three major bureaus
What is the best debt/credit ratio for your FICO score?
30%, but try to stay under 50% on each card
Which is better, lots of credit cards or some credit cards and some installment
loans?
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