Exam 6: Using Credit

Cards that can be used to pay for selected items and the amount of the transaction is automatically subtracted from the card value are called ____ cards.

Secured credit cards require that the card holder puts up collateral in order to get the card.

A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time.

For someone with a good credit rating,lenders will typically lend up to 100% of equity in a home using a home equity credit line.

Credit card users can often avoid finance charges entirely by paying their total balances by the stated due date.

Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume?

Credit cards with very low minimum balance requirements are in the consumer's best interest.

Persons with very poor credit ratings can still get ____ credit cards.

Being late on credit payments only 2-3 times per year pay label you a "late payer" in your credit file.

____ cards offer the cardholder a way to contribute to a worthy cause,sometimes described as "painless philanthropy."

Having a checking account tells a creditor that you have some experience in managing your own funds.

Chapter 7 bankruptcy will

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Most creditors [will | will not] be willing to work something out with you if you are having difficulty meeting your payments.

____ are not a type of open account credit.

The intent of a Wage Earner Plan is to eliminate most of the debtor's obligations.

Open account credit is a form of credit extended to a consumer in advance of any transaction.

It is recommended that you never give your credit card account number out over the phone.

It is safe,and often required,to give your Social Security number as a form of identification when using a credit card.