Exam 6: Using Credit

The most popular travel and entertainment credit card is American Express.

____ card is an example of a prestige credit card.

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 "preferred" way of stealing from consumers now is [through your credit card | stealing your car].

Chapter 7 bankruptcy will typically

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 first step to take in establishing a credit history is to [get a credit card | open checking and savings accounts].

On September 8 Maggie lost her wallet.The following four credit cards and one debit card were in it and the following charges were made before she was able to report the cards missing.How much is she legally responsible for?

It is not a good idea to use credit for

Debit cards look like credit cards,but they work like checks.

The lender uses a credit application to determine whether the borrower has the ____ to handle the debt.

Credit should not consistently be used for non-durable goods.

Which of the following types of credit cards may or may not have an annual fee?

All of the following are key items lenders look at in granting credit except

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. -A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

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. -As people reach their mid-40s,their use of credit tends to [decline | accelerate].

One can be overusing credit even though he can afford to make minimum monthly payments on time.

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. -An example of open account credit would be a bank [debit | credit] card.

Thirty-day or regular charge accounts require the customers to pay off the debt 10 to 20 days after the billing date with no interest expense.

Credit reports on individual borrowers are issued by credit unions reporting agencies.

Generally speaking,the interest rates on credit cards are lower than any other form of credit.

If you initiated the telephone call,it is okay to give your credit card account number when ordering/purchasing from major catalog houses,airlines,hotels,and so on.