Exam 6: Using Credit

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -It would be [legal | illegal] for a credit bureau to put into your file comments about your employment history.

Balance transfers can be expensive,including fees and eventually high interest rates.

A credit card user's credit rating will be harmed if she pays only the minimum monthly payment on a credit card.

Women should use a consistent,specified legal name on all credit applications and/or communications.

Never adding up all one's bills is one of the signs that one may be headed for serious credit problems.

Errors and abuse in computer-generated billing resulted in passage of the

The most common method used by lenders to apply finance charges to credit cards is the average daily balance including new purchases method.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The number one consumer complaint is now [identity theft | credit card fraud] according to the Federal Trade Commission.

The amount of finance charges one pays on a credit card depends only on APR and the amount one charges.

One can lose his home if he does not repay his home equity line of credit.

With open account credit,one can often avoid interest charges if

Generally,finance charges are computed only on the unpaid balance from previous months' purchases.

William uses his bank credit card frequently;however,he always pays off the total balance on the card each month.What should William look for in a credit card given the way he uses a credit card?

____ would be an indication of overspending.

Your credit limit is determined by a number of factors,such as financial position,earning power,etc.

Paying a loan off much quicker than scheduled is one way to build a good credit rating.

Which of the following types of credit cards always have an annual fee?

Bank credit cards represent the most common kind of open account credit.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -It is [legal | illegal] for merchants to give discounts to customers who pay cash rather than using credit.

Interest rates on ____ are typically lower than on any other form of consumer credit.