Exam 6: Using Credit

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. -Interest paid on a [home equity line of credit | credit card] would be deductible if you itemize your deductions on your federal tax return.

For a person who sometimes pays his entire credit balance and sometimes pays the minimum payment,which calculation method would be the least expensive?

Interest will almost always begin to accrue immediately when you use a bank credit card to

Nearly all credit cards have annual fees.

Debit cards are a form of credit that is very convenient to use.

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

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

Credit bureaus provide information about prospective borrowers.

Chapter 7 bankruptcy will typically

Credit reports on individual borrowers are issued by credit card issuers.

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

It is not a good idea to use credit to

One can and should check his credit bureau file regularly.

The following are methods used to obtain personal information for identity theft except:

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].

One should not use credit to purchase food,clothing,and other non-durables,even if it is only for convenience and the balance will be totally paid upon billing.

A credit applicant will be granted credit only after establishing a complete file at the local credit bureau.

A problem with home equity loans is the

Individuals with better credit ratings usually can secure higher credit limits.

A debt safety ratio of 25% might be a signal of financial trouble ahead.