Exam 5: Introduction to Consumer Credit

Which of the following is the worst rating to have on your credit report?

Consumers have three alternatives in financing current purchases, including drawing up on savings, use their present earnings, or borrow against their expected future income

College students are not a prime target for credit card issuers.

Cobranding has become increasingly unpopular since General Motors launched its credit card in 1992.

The use of credit can provide up to a 45 day "float."

Which of the following is not an example of revolving credit?

Experts suggest that you spend no more than 20 percent of your net income on credit payments. (However, 15 percent is much better.)

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

A credit arrangement that has no extra costs and no specific repayment plan is called

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

Kathy purchased a $2,000 digital TV from Young's Appliances. She will make 12 equal payments over the next year to pay for it. She is using:

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

There are very few valid reasons for using credit.

The use of credit indicates personal and financial instability.

Provincial legislation regarding consumer reporting agencies regulate the type of information that can appear in a credit report and protects the consumer's right not to suffer from false information.

As a result of the financials crisis in late med to late 2000 decade, new regulations were brought into effect to protect Canadian credit card users. Briefly list and describe these.

If your identity is stolen you should

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

The borrower's financial ability to meet credit obligations is called

Which of the following is not an example of revolving credit?