Exam 6: Using Credit

The Wage Earner Planner requires debtors to give up most of their assets.

Auto loans and mortgage loans are about equal in terms of their relative share of average household liabilities.

Appropriate reasons to use credit include for

The most common forms of open account credit are bank credit cards and retail charge cards.

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. -Most bank credit cards have interest rates that will [remain the same as long as you hold the card | be adjusted as interest rates in general rise and fall].

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 decision whether or not to grant you credit will be made by [individual creditors | the credit bureau].

Rebate card work best for those who use the rebates and

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

The majority of persons filing bankruptcy file Chapter 7 bankruptcy.

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. -Most creditors [will | will not] be willing to work something out with you if you are having difficulty meeting your payments.

Ann Marie accumulated a large balance on her credit card while in college.She is trying to get it paid off as quickly as possible and wants to roll the balance onto a new credit card.She now uses a credit card only for emergencies.What should Ann Marie look for in a credit card given the large balance and the way she plans to use the card?

As well as being among the cheapest forms of consumer credit,these offer shelters from taxes:

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

Secured credit cards require that the card holder puts up collateral in order to get the card.

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

Open account credit is a form of credit extended to a consumer in advance of any transaction.

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

Credit report is routinely used to predict credit worthiness.

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.

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. -You are likely to have financial difficulty if your personal credit obligations exceed [15% | 20%] of your take home pay.