Exam 7: Choosing a Source of Credit: the Costs of Credit Alternatives

According to Fair Isaac Corporation (FICO),a personal bankruptcy can cause an immediate drop in your credit score of how many points?

Before deciding to borrow money,you should ask yourself:

The CCCS sometimes charges a nominal fee if it:

The total dollar amount you pay to use credit is called the:

Steve Black has two children.He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together.Which one of the following best explains Gary's spending,which can lead to overindebtedness?

The finance charge may include which of the following:

Jeff Bloom wants to have a house just like the one his parents had when he was a teenager.He finds the house he wants and gets an interest-only loan on it for the first five years.Which one of the following best explains Jeff's spending,which can lead to overindebtedness?

An increasing number of bankruptcy filers are well-educated,middle-class people.

Which of the following institutions is generally sympathetic to borrowers with legitimate payment problems?

Mature consumers have certain information and:

In a Chapter 7 bankruptcy,which of the following debts may be excluded from discharge?

The Consumer Credit Counseling Service is affiliated with the:

Chuck Spencer wants to borrow money for six years to purchase a new car.He has been offered a seven percent fixed rate loan and also a variable rate loan that has an initial rate of five percent.By choosing the variable rate loan,Chuck is reducing the lender's risk by:

Sarah Parker goes out with the girls for a night on the town and gets home late,waking everyone in the house.In response,her husband Jerry goes out the next day and spends $500 on new shoes for himself,putting it all on a credit card.Which one of the following causes of overindebtedness best explains Jerry's spending?

If creditors give you no credit for payments made during the billing period,then this is called the:

Your bank card has an APR of 21% and there is a 3% fee for cash advances.The bank starts charging interest on cash advances immediately.You get a cash advance of $500 on the first day of the month.You get your credit card bill at the end of the month.What is the approximate total finance charge you will pay on this cash advance for the month? Assume each month has 30 days.

Which type of credit insurance repays your loan in the event of a loss of income due to illness or injury?

Two key concepts that you should remember when borrowing are the finance charge and the annual percentage rate.

In open-end credit,what are the various systems creditors use to calculate the balance on which they assess finance charges?

Credit unions offer loans with a single repayment schedule to non-members.