Exam 6: Introduction to Consumer Credit

A friend comes to you for advice about improving their credit score. What advice would you give them? Make sure to include the five steps for improving your credit score.

Credit is an arrangement to receive cash, goods, or services now and pay for them in the future.

What does it mean when a credit card is cobranded?

With closed-end credit, loans are made on a continuous basis and you make at least a partial payment each billing period.

A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5 Cs of lending?

By paying cash for a purchase, you:

The larger the debt-to-equity ratio, the riskier the situation is for lenders and borrowers.

A lender requires a cosigner even when a borrower meets the lender's criteria for making a loan.

In the 5 Cs of credit, conditions refers to general economic conditions that can affect your ability to repay a loan.

When did installment credit explode on the American scene?

Jim Roy visits the doctor for his annual check-up which costs $85. He is billed for this at the end of the month. What type of credit did Jim use?

Which federal law allows consumers to withhold payment for faulty or defective goods or services (within certain limitations) when purchased with a credit card?

The debt-to-equity ratio is:

"Shopaholics" and young adults are most vulnerable to misusing credit.

An unauthorized person who obtains a credit report under false pretenses may be:

Another name for open-end credit is:

Which one of the following is important to do to help avoid credit card fraud?

The aging of the baby boom generation has added to the growth of consumer credit.

Interest is a periodic charge for the use of credit, or other finance charges.

Which federal consumer credit law starts all credit applicants off on the same footing?