1. Why are auto loans generally the easiest loans to get?

a. Due to consumer protection.

b. There is usually a down payment, and an auto loan is secured.

c. An auto loan only requires a minimum credit score.

d. Automobiles are easy to repossess due to GPS being placed in all cars with loans.

2. Which of the following likely has the highest credit score?

a. Bob has 5 credit cards, credit utilization of 40%, and a perfect payment history for 5 years.

b. George has 3 credit cards, credit utilization of 29%, an installment loan, a mortgage, and a perfect payment history for 3 years.

c. Tim has 2 credit cards totalling a $50,000 limit.

d. Fred has a 30-year mortgage in the 10th year with a perfect payment history and the mortgage is his only debt.

3. Credit agencies do not collect any of the following information for credit reports except:

a. Home ownership.

b. Employment Information.

c. Bank accounts with over withdrawals.

d. Child support payments in arrears.

4. Credit agencies do not collect any of the following information for credit reports except:

a. Employment information

b. Age of borrower.

c. Amount of alimony paid.

d. Tax lien.

5. The TransUnion automobile insurance score uses all of the following except:

a. Credit payment history

b. Driving record

c. Credit utilization percent

d. The number of credit accounts

6. What is the likely effect on the credit score given the following? Assume a 750 score to start.

-Credit utilization this month 40%

-One new hard inquiry this month

-One new late payment report this month (30 days)

a. Down 40 points.

b. Down 50 points.

c. Down 60 points.

d. Down 80-82 points.

Please explain how you arrived at your answers. Thank you!