Exam 6: Using Credit

Revolving credit lines are often accessed by writing checks.

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

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. -In terms of overall household liabilities,[auto | home] loans comprise the largest share.

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

Home equity loans are one of the least expensive forms of consumer credit.

The key to credit worthiness is to keep your debt safety ratio as high as possible.

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 majority of reduction in consumer indebtedness is due to [loan defaults | loan repayments]

A woman's income can legally be discounted when she applies for 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. -A proper use of open account credit would be to buy a [food | washing machine].

Prepaid cards are a form of credit that is very convenient to use and do not charge a service fee.

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. -In the year after the Credit Card Act of 2009 was passed,there was a(n)[increase | decrease] in late payments.

Saving is the preferred way to provide for financial emergencies.

William uses his bank credit card frequently;however,he always pays off the total balance on the card each month.What should William look for in a credit card given the way he uses a credit card?

Most organizations that issue credit cards have basically the same qualifications for card applicants.

For a fee,credit bureaus can provide credit scores for prospective borrowers.

Denise (a single taxpayer)contributes $6,000 annually to her church.In addition,she owns a home in which she has $20,000 equity,and she itemizes deductions.If she pays $1,000 interest on credit cards,$6,000 interest on her home equity loan,and is in the 26% marginal tax bracket,calculate Denise's tax savings from these interest payments.

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. -One condition of a secured credit card is that the holder must [pay a higher rate of interest | deposit an amount equal to the credit line in a savings account].

____ are not a type of open account credit.

Prepaid cards are used to pay for things,with the purchase amount electronically deducted from the 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. -[The Wage Earner Plan | Straight Bankruptcy] involves some type of debt restructuring.