What's Your Financial IQ?

Q.1

Late payments can stay on your credit report for ____ years

One
Five
Seven
It would not show up as long as I send in my payments

Q.2

How much money should I save for an emergency fund?

$2,000
Two months of rent or mortgage payments
Six months of living expenses

Q.3

Which item below is not included in your credit report?

Your payment history
Your income
Your current credit card balance

Q.4

You decide to buy a new $2,200 plasma TV. You take advantage of the store's special offer to receive an additional 10% off if you open the store credit card with an 18% Annual Percentage Rate (APR). If you make your minimum monthly payments of $50, how much will your TV ultimately cost once paid in full? (You may want to get your calculator out!)

$1,980
$2,336
$3,026.84

Q.5

If you co-sign a car loan for your son, is your credit rating affected if he is late or misses a payment?

Yes
No

Q.6

You can be denied a loan because you are not married.

True
False

Q.7

If there are errors on your credit report that you've reported to the credit reporting agency, they must take steps to investigate the disputed items.

True
False

Q.8

For how long will a lender typically lock-in your mortgage rate before you buy your house?

1-3 months
4-6 months
1 year

Q.9

What are the four primary factors – often referred to as the "4-Cs" – that lenders use to determine a person's creditworthiness?

credit, capital, collateral, capacity
credit, capital, cosigner, collateral
closing costs, credit, collateral, capacity

Q.10

How often should you check your credit report?

Once a year
When you are ready to apply for a loan
Once every 5 years