Exam 6: Introduction to Consumer Credit

Installment sales credit is a loan that allows you to receive high-priced items,such as large appliances or furniture.

In the 5 Cs of credit,capacity refers to the borrower's attitude toward his or her credit obligations.

The accuracy of credit reports has worsened recently.

If your monthly net (after-tax)income is $1,500,what should be your maximum amount spent on credit payments?

Another name for open-end credit is:

Which consumer credit law prohibits abusive,deceptive,and unfair practices by debt collectors?

When you cosign a loan,you are being asked to guarantee this debt.

Department stores and gasoline companies are good places to obtain your first credit card.

Which federal consumer credit law regulates the advertising of credit terms?

Affan Chawdry has monthly net income of $1,050.He has a house payment of $450 per month,a car loan with payments of $250 per month,a Visa card with payments of $50 per month,and a credit card with a local department store with payments of $100 per month.What is Affan's debt payments-to-income ratio?

If you have incorrect information in your credit file:

A good example of closed-end credit is:

Many retailers use open-end credit.

In determining your credit capacity,you first provide for basic necessities,such as:

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

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

How can you protect yourself against debit/credit card fraud?

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in that report?

What are the two basic types of credit? Give examples of both.

Describe the federal law that protects you from billing mistakes.