Exam 6: Introduction to Consumer Credit

Most of the information in your credit file may be reported for only seven years.If you have declared personal bankruptcy,that fact may be reported for 10 years.

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

What can you do if your identity is stolen?

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.

Samantha Prescott knows that credit companies must evaluate her on the same basis as a borrower who is male.Which consumer protection law guarantees her this right?

Jennifer Rogers needs a loan to purchase a new car.She knows the creditor must:

You should sign your new credit cards as soon as they arrive.

The maximum amount of credit you are allowed by a creditor is called

Amy Farmer is getting a loan to buy a used car.The bank wants to know the trade-in value of the car she is purchasing.Which of the 5 Cs of credit is the bank examining?

The best way to maintain your credit rating is to:

The debt payments-to-income ratio is calculated by dividing your total liabilities by your net worth.

Stored value (or gift)cards:

Although credit allows more immediate satisfaction of needs and desires,it does not increase total purchasing power.

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

If you are denied credit,your first step should be to:

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

A valuable asset pledged to assure loan payments and subject to seizure upon default is called:

Which one of the following agencies can produce for a subscribing member,almost instantaneously,a report about your past and present credit activity?

Credit bureaus obtain their data from banks,finance companies,merchants,credit card companies,other creditors,and court records.

Installment sales credit is a: