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. -An employer could get a copy of your credit file [without asking you | only with your written permission].

Nearly all credit cards have annual fees.

A credit card can provide an interest-free loan if you

Most negative credit information remains on your credit file for ____ years.

The Equal Credit Opportunity Act guarantees women will receive the credit for which they have applied.

Before filing for bankruptcy,debtors should consider seeking the help of a credit counselor.

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 proper use of open account credit would be to buy a [food | washing machine].

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 home equity lines of credit are one of the [most | least] expensive form of consumer 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. -Truth in Lending requires the lender to give the borrower certain information such as the APR and [quality of merchandise | dollar amount of interest to be paid].

If the information on your credit report is in dispute,you are entitled to

Auto loans are an example of open-end credit since you can add to the debt when you purchase another vehicle.

Prepaid cards are a form of credit that is very convenient to use and do not charge a service 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. -A credit scoring system might assign points according to your annual income and [gender | age].

Appropriate reasons to use credit include for

The APR on this account is 18%.Assuming the $926 does not include any interest charge,how much of your minimum payment will be used for interest?

The heaviest users of consumer debt are in the 25-44 age group.

____ cards offer the cardholder a way to contribute to a worthy cause,sometimes described as "painless philanthropy."

Your credit card has been stolen and used by someone else.The maximum amount you could be responsible for paying is

The following information provides insight to a lender about the applicant's credit worthiness except:

Bank credit cards often offer features such as buyer protection plans for a fee to all customers.