Master Trainer Certification 2024 | CBA Training Institute

True or False: A primary objective of CREDIT AS AN ASSET™ is to provide financial coaches with extensive training on debt management, credit counseling, and credit repair.

True False

When is the deadline to sign and return the Master Trainer licensing agreement to CBA?

There is no deadline As soon as I complete the 2-day training After I pass the exam Before the end of the year

Once certified as a Master Trainer, which of the following are required?

Pay annual renewal fee Complete Professional Development offered by CBA each quarter Facilitate and certify at least one CREDIT AS AN ASSET™ training each year All of the above

True or False: Once licensed, a Master Trainer may co-brand the materials and make applicable adjustments to content, like including local examples of credit realities.

True False

The primary audience for the CREDIT AS AN ASSET™ training is consumers/participants.

True False

Which of the following are permitted of Master Trainers? (Select all that apply)

You may transfer your certification to another practitioner You may use and market CREDIT AS AN ASSET™ materials without crediting CBA You may offer CREDIT AS AN ASSET™ trainings to practitioners You may make changes to the curriculum as applicable You may charge a fee to practitioners to attend the training You are certifying those who attend your training to become Master Trainers

True or False: Master Trainers may offer a CREDIT AS AN ASSET™ training to staff at their organization and it will count toward their facilitation requirements.

True False

What is a key difference between Fair Isaac Corporation (FICO)® and VantageScore® Scoring models?

One is much more accurate than the other. Scores created by FICO use the same algorithm across all three bureaus, while VantageScore calculates scores from each of the three bureaus differently. VantageScore uses the same algorithm across all three bureaus, while FICO calculates scores from each of the three bureaus differently. VantageScore combines information from all three credit bureaus into one single score.

Samuel checked his own credit report 9 months ago prior to applying for an unsecured credit card. He submitted an application but was unfortunately denied for this card. Three months later, he applied for a secured credit card and was approved. You pull a business division credit report as part of a coaching session. How many hard inquiries will appear on his report?

1 2 3 4 5

Donald is behind on several bills due to a layoff. Donald is caught up on his rent and utilities, but he is 30 days behind on his car loan and has two collections -- $600 for a telecom collection debt and $200 for a charged off cell phone, which are scheduled to fall off his credit report in the next 6 months. Fortunately, Donald recently found a job and will begin working again within the next 2 weeks. Which account might Donald prioritize upon receiving his first paycheck?

All debts are equally hurting him The car loan The cell phone collection account The telecom collection

Khalil has an appointment with you to talk about his debt. Which of the following steps will you take first.

Inventory debts Consider his goals Assess his budget Set up automatic payments for all his debts

As of 2022, medical collection debt may not be reported on consumer credit reports until ____ months have passed after the bill was incurred.

3 6 9 12

As of April 2023, medical collection debt no longer shows on a credit report if the original reported balance is less than:

$100 $250 $500 $1,000

Will checking your own credit report cause your score to go down?

No, checking your own credit report is a soft inquiry and will not impact score. Yes, checking your own credit report is a hard inquiry and will impact score.

True or False: If used for a reoccurring payment, a prepaid card is an excellent tool for building credit.

True False

Six months ago, Charu applied for four mortgage loans (consecutively) and then a credit card within the same two weeks. How many inquiries will impact her FICO® credit score?

1 2 3 4 5

True or False: If you pay all your monthly bills on time, you will automatically have a high credit score.

True False

True or False: Leading a Credit Building Basics training counts toward your annual training facilitation requirement.

True False

Which statement best describes credit repair?

Credit repair organizations often dispute all negative information on credit reports in an attempt to overwhelm lenders with disputes to keep them from responding. Credit repair is the same as credit building, and the words can be used interchangeably. Credit repair is the best way to improve a credit profile because credit repair organizations only address derogatory information on credit reports. Paying for credit repair is the only confirmed way to get inaccurate information off credit reports.

True or False: All creditors MUST report to all three major credit reporting agencies (CRAs): TransUnion, Experian, and Equifax.

True False

Yaa has a prime credit score, and for the past 24 months, consistently uses 10% or less of her credit utilization each month. Last month, her father passed away, and Yaa had to use her credit card to pay for funeral expenses. This brings her utilization up to 65%. How might this impact her credit score if trended data is incorporated?

65% is a very high utilization rate, and she will likely see her credit score drop significantly. Yaa’s credit score may be impacted by the change in utilization, but since she typically keeps utilization at 10%, her score may not change very much. As long as she makes her payments on time, there should be no change to Yaa’s credit score. Yaa’s credit score will increase because she is actively using available credit to pay for expenses.

CREDIT AS AN ASSET™ focuses on credit building as a financial capability strategy and offers dynamic tools to integrate it into existing or prospective asset building programs.

True False

Veronica is in school and is excited to graduate in 6 months. She has a part-time job but the hours are inconsistent. She’s also anxious as she will have to start paying her student loans. Her long-term goal is opening her own business. After checking her credit, you realize she doesn’t have a credit score. You and Veronica collaboratively worked on her budget and determined she has no room for added expenses. Which option would be the best option for her?

Credit builder loan Secured credit card Unsecured credit card Wait until she graduates and starts paying on her student loans

Having a credit account with a mainstream financial institution is an indicator of credit success under the Credit Strength Framework “Access” category because:

The only way to access credit building products like credit cards and loans is through a mainstream financial institution. Mainstream lenders are the only lenders who report information to the credit bureaus. Mainstream financial institutions may offer larger graduation products that a participant needs to meet their goals. Checking and savings account information shows up on credit reports.

When using credit scores for outcome tracking, which of the following is true (Select all that apply):

Different score models (e.g. FICO®, VantageScore®) can be used interchangeably. If participants can see their credit score through a free monitoring app, it is not necessary to purchase a credit score with a credit report. You must abide by any contracts you sign with the credit bureaus or scoring companies around credit report and score sharing. It is important to always use the same score models at intake or baseline as you do at follow up intervals.

Oliver has been meeting with you for the last year. During that time, he has taken out a small dollar loan, paid it off, and moved from unscored to a 680. He has now begun receiving offers for credit cards and products in the mail. What would you encourage Oliver to keep in mind as he looks at these offers?

He should apply for multiple cards so he can leverage his credit score and add more tradelines to his account to keep building his credit score. He now has a credit score thanks to his small dollar loan. He does not need to take out any other products. He needs to make sure that any product he considers is accessible, affordable, and relevant for his credit goals. He should choose the credit card with the highest limit to increase his available credit since that is a big part of score.

A community bank reaches out to your organization because they have a new credit builder loan they are offering in the community. They know you are involved in coaching and encourage you to mention this product to program participants who meet application requirements. This is an example of:

Referral Partnership Offering your own product None of the above

Which of the following is true of a hard inquiry?

Initiated when a consumer applies for credit Is visible on credit reports for 24 months Impacts your credit score for 12 months All of the above

Which of the following are examples of ACTIVE credit accounts? (select all that apply)

A credit card that has not been used in the last 1.5 years A credit card in good standing that was used last month A credit card that has a $0 balance but was last used 5 months ago An open car loan in good standing A credit card that reports as closed by grantor

Michael is a 20-year-old student at a community college. He just opened his first credit card account but does not yet have a credit score. Which of the following describes his credit profile?

Credit retired Lost access to credit New to credit No credit history Thin file

You help Sunisa pull and review her credit report, which shows several collection accounts that she has paid in full. Sunisa believes these should be removed from her credit report because they are paid. Which of the following statements is true about paid collections (Select all that apply)

Only collections that are settled or unpaid will show on credit reports. Medical collections accounts that were paid in full no longer show on credit reports. While paid collections accounts may still show on credit reports, they are no longer factored into certain FICO® and VantageScore® scoring models. Most paid collection accounts will remain on credit reports for seven years from the date of first delinquency, regardless of payment status. All of the above are true

True or False: In order to build credit using a credit card, a consumer must carry a balance on the card from month to month.

True False

Your program participants start mentioning a popular credit influencer on social media who is helping them better take control of their credit. They share what they've learned, which you quickly realize is inaccurate and full of misinformation. Which component of the Credit Strength Framework can you focus on to support your participants?

Increasing credit "Knowledge" via classes, workshops, or coaching sessions to combat misinformation online Improving credit "Access" because offering a product will help combat misinformation by teaching strong credit habits. Supporting credit "Actions" by encouraging participants to comment on the influencer's posts about information being wrong. All are sufficiently being covered.

Toni was late on their credit card payment in December 2017. They brought the account current but fell 30 days behind again in December of 2018. The account went to collections in June 2019. It was resold to another collection agency in February 2020. When is the Date of First Delinquency?

December 2017 December 2018 June 2019 February 2020 This account is no longer on Toni's credit report

When creating a plan to pay off debt, which of the following strategies is NOT recommended?

Pay down active revolving accounts Pay off and close all active credit accounts Prioritize debt payments based on credit and financial stability Weigh the cost and benefits of paying the debt

When navigating debt from a credit building perspective, which of the following might be a good starting strategy for someone with several open delinquent accounts and outstanding debts in collections?

Get any 30 or 60-day delinquent accounts back to current status. Open a new credit card, pay on time, and ignore other debts. Create a payment plan with all existing collection agencies in order to build credit. Pay off credit card debts and close the accounts.

Which of the following is NOT considered a credit building product?

Social loans Small business loans Secured credit cards All of the above can be credit building products

Which is an example of taking into consideration your participants’ unique needs?

Recommending all participants access the same secured credit card from a local credit union Telling all participants to work with a national bank that has a good reputation Being sensitive to cultural and religious backgrounds that participants share Encouraging participants to apply for the credit product with the largest amount offered if they can budget in the payments

Which of the following is true about closed credit accounts with no history of late or missed payments?

These accounts had a positive impact on the score while they were active, but once paid off, no longer help build credit. As long as they are closed in good standing, these accounts will remain on the credit report indefinitely. These active credit accounts will continue to help a consumer build credit. These accounts should be disputed because paid accounts are immediately removed from credit reports.

You review Lou’s credit report and see four different utility collection accounts. One has been paid in full, and one has been settled. He also has two outstanding unpaid collections. One is six months old. The other is two years old. Lou wants to know which of these accounts is impacting his credit score the most. Which account has the most negative impact?

The utility collection that has been paid in full because it’s no longer active. The six month old unpaid utility collection because it is relatively recent. The two year old unpaid utility collection because it has been on his report longer. A settled utility collection because he did not pay the full amount. All have the same impact on Lou’s credit score.

When is a consumer considered late for credit reporting purposes?

The day after the payment is due After they are five days or more past due After they are 30 days or more past due It depends on the lender

What should you be mindful of when identifying credit building products in your community?

Relevance and accessibility for your participants Flexible terms and affordability Potential for graduation All of the above

Which of the following is an example of a participant who may NOT yet be ready to add a credit building product?

Someone who is paying child support Someone who has a few hundred dollars in collection debt on their credit report Someone who is unable to make rental payments on time Someone who already has one active tradeline

True or False: An organization must be prepared to originate and report credit builder loans in order to incorporate credit building into their program.

True False

Which of the following is NOT a component of the Fair Credit Reporting Act (FCRA)?

Grants consumers the right to access their own records and the ability to dispute errors. Dictates the statute of limitations for debt collection in each state. Dictates the length of time that accounts can remain on a consumer’s credit report. Requires data furnishers to report data with accuracy and integrity and to respond to disputes in a timely manner.

Layla is a resident in a transitional housing facility. She wants to establish and build credit so she can successfully move into her own apartment next year but is afraid of going into debt. She also does not want to use any product where she might overspend. With that in mind, which products could be options for her (Select all that apply)?

Credit builder loan Rent reporting Secured credit card Unsecured credit card

Rosa brings in a copy of her TransUnion credit report that she pulled from AnnualCreditReport.com. You have also pulled a copy of her credit report, but you accessed it directly from TransUnion’s database. Are you looking at the same report?

Yes, you are both looking at identical TransUnion reports. No, Rosa has accessed a Business Division Report. You have accessed a Consumer Disclosure Report. No, Rosa has accessed a Consumer Disclosure Report. You have accessed a Business Division Report.

A local Community Development Financial Institution (CDFI) makes credit builder loans. You reach out to them about working together. You would provide coaching and financial education to potential borrowers. They would originate, service, and report the loans. This is an example of:

Referral Partnership Offering your own product None of the above

Jenn has been receiving calls from collectors. When she receives her tax return, she decides to address a few of her collection accounts. She reaches out to creditors and is able to come to settlement agreements on these accounts. She pays an agreed upon amount, and the remaining balance will be forgiven, which means these accounts are now marked as satisfied via settlement. Which of the following is true about settling accounts in collection (Select all that apply)?

Settling costs less money than paying in full. The forgiven amount may be taxed. Settling is more beneficial for the credit score than paying in full. Settling and paying in full have the same impact on Jenn's credit score.

Daniel and Liz recently got married. Liz has an excellent credit score and a long credit history while Daniel is unscored. Daniel needs to purchase a car to get to work, but his lender is requiring that he have a cosigner because of his credit profile. Liz agrees to be the cosigner. If Daniel misses a payment, what could happen to Liz?

Liz is now responsible for making payments to keep the account on time. Liz has no responsibility for repayment because she is a cosigner, not the primary borrower. Liz will not see any delinquencies on her credit report if Daniel falls 30 days or more past due of the account. Liz can easily get removed from her duty as a cosigner if Daniel stops paying.