| A | B |
|---|
| What are the key features in computing your FICO score? | Debt History, Debt Level, Length of time in debt, new debt, type of debt |
| Bankruptcy | Cancels out most of a person’s debt and allows creditors to get a designated share of any money that the person or debtor can afford |
| Repossession | To reclaim possession of an item because the borrower failed to make payments |
| Delinquency | an overdue payment |
| In which case are you most likely to get sued if you are behind in paying bills? | When you stop trying to make an effort to try to pay them |
| When should you send a cease and desist letter to creditors? | Only in the most extreme situations |
| What are the four walls? | Food, clothing, transportation, shelter |
| What should you do if you feel that you are a victim on Identity Theft? | 1) Contact the fraud victim division of each credit bureau; 2) File a police report |
| What are some precautions to prevent your identity from being stolen? | Shred all documents that contain account information; Create passwords that have a combination of letters, numbers and characters; Never buy anything on the internet if you are using a public internet café |
| A collector is taught to: | Evoke strong emotion |
| Collectors... | Collectors work low-paying jobs with a high turnover rate. |
| Lawsuits under $10,000 are.. | filed in small claims court and are informal proceedings. |
| Foreclosure | When the homeowner can’t make payments on the mortgage and the lender takes the property: |
| The three credit bureaus are: | Experian, TransUnion and Equifax |
| Garnishment | Court action that allows a lender to take wages directly from a paycheck. |
| Amount of time a credit bureau has to remove inaccuracies from your report | 30 days |
| Which type of debt can garnish your wages quickly and easily? | IRS and Student Loan |
| The only information that can be legally removed from your credit bureau report | inaccurate information |
| The fastest growing group of bankruptcy filers ... | college graduates |
| Identity theft is usually committed by | someone you know |
| The Federal Fair Debt Collections Practices Act... | made it illegal for collector's to call outside of the hours of 8 a.m. and 9 p.m.; allows you to demand that a creditor cease calling you at work; Collectors cannot contact third parties—such as family or neighbors—more than once about your debt, and they cannot discuss the details of your debt; |
| A FICO score is | debt management score which is determined by how a person pays their debt |
| How often can you obtain a free credit report from a credit bureau? | Once a year from each of the three credit bureaus |
| Why are credit repair companies “scams”? | You cant "repair" your credit, and the only thing that can be removed is inaccuracies |
| How long does a Bankruptcy stay on your credit report? | 10 years |
| Your FICO score is really your __________________ score. | "I love debt!" |
| Why won’t a credit card company sue you if you are using a ProRata plan? | because you are at least paying something and it will mess with the computer software |
| How long, on average, should you use the ProRata plan? | no longer than 6 months |
| How long can you typically miss a car payment before it gets repossessed? | 3 months |
| When is a good time to start checking your credit report? | When you turn 18 |
| How long does normal debt stay on your credit report? | 7 years |
| Why should all letters to creditors be sent “certified” mail? | So that you have proof that the letter was received |
| What is the best way to deal with collectors? | On your terms |
| What is an inquiry? (on the credit report) | when someone has requested to look at your credit information |
| What are some of the techniques that collectors are taught? | To evoke strong emotion; pull the rug out from under you technique; embarrassment |
| If you can’t pay your bills.. what are some of the things that you can do BEFORE filing for bankruptcy? | Contact lender and try to settle; debt snowball; sell things! |
| Why should a “cease and desist” letter only be sent in extreme situations? | Because you are likely to be sued. |
