April is National Financial Literacy Month and a good reminder of how important it is to be financially literate. It's especially key if you're thinking about buying a home.
Take our short quiz, with questions from our 12–module CreditSmart® program, to see how your financial knowledge stacks up.
Answer: Seven
Late payments will stay on your credit report for seven years. To learn more, visit CreditSmart's Module 5: Establishing and Maintaining Good Credit.
Answer: Six months of living expenses
The general rule of thumb is to have enough savings to cover six months of living expenses. To learn more, visit CreditSmart's Module 2: Managing Your Money.
Answer: Your income
Credit reports do not take your income into account. To learn more, visit CreditSmart's Module 5: Establishing and Maintaining Good Credit.
Answer: $3,026.84
You will have paid $1,046 in interest charges over the course of 5.1 years, bringing the real cost of your TV to $3,026.84. To learn more, visit CreditSmart's Module 5: Establishing and Maintaining Good Credit.
Answer: Yes
As a cosigner, the loan obligation and your son's payment history will be part of your credit report. If your son is late or misses any payments, your credit score will be affected. To learn more, visit CreditSmart's Module 5: Establishing and Maintaining Good Credit.
Answer: False
The Equal Credit Opportunity Act prohibits a person from being denied credit based on race, gender, national origin, marital status and receipt of public assistance. To learn more, visit CreditSmart's Module 5: Establishing and Maintaining Good Credit.
Answer: True
The credit reporting agency must investigate disputed items within 30-45 days and provide you written notice of the results. To learn more, visit CreditSmart's Module 5: Establishing and Maintaining Good Credit.
Answer: 1-3 months
A lock-in, also called a rate-lock or rate commitment, is a lender's promise to hold a certain interest rate and points for you, usually for one to three months while your loan application is processed.
Answer: credit, capital, collateral, capacity
The correct 4-Cs are credit, capital, collateral, and capacity. To learn more, visit CreditSmart's Module 7: Thinking Like a Lender.
Answer: Once a year
You should check your credit report on an annual basis to ensure there are no errors and to see if there have been any attempts to steal your identity. You can get a copy of your credit report from www.annualcreditreport.com. To learn more, visit CreditSmart's Module 5: Establishing and Maintaining Good Credit.
There is no better time than now to brush up on your financial education and life–long money management skills.
Our CreditSmart® program is your guide to better credit, money management, and responsible homeownership. Taking this 12–module course online, or in a class led by a HUD–approved housing counselor, will help you:
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