Exam 6: Building and Maintaining Good Credit

If your credit card is lost or stolen or if you ever suspect fraudulent use of an account,you should contact each of the three national credit bureaus and have a "high-risk account holder" designation put on your file.

Applicants with low credit scores are often only able to obtain credit in the subprime lending market.

The three digit code on the back of a credit card that helps protect against unauthorized use of the card is called its card verification value.

If your total debts exceed 33 percent of your net worth (equity)you are seriously overindebted.

Which of the following is a court-sanctioned procedure by which a portion of your wages are set aside by your employer to pay a debt?

Under a tiered pricing system,creditors charge lower interest rates to lower-risk borrowers.

According to a recent study,approximately 5 percent of those applying for credit are turned down.

The full additional cost of credit measured in dollars is called the

The actual decision to grant credit is made by a credit bureau.

Credit card blocking is the process whereby the merchant may notify the credit card issuer to put a hold on your account for the anticipated total amount of the charge.

Taking on excessive debts early in life may compromise your goal of being financially successful.

Signing up for a "free" credit monitoring service where you are automatically renewed on a fee basis unless you cancel at the end of the free period is an example of a negative option plan.

The only truly free way to obtain your credit reports is through annualcreditreport.com.

Convenience use of a credit card is justified only if the card balance is paid in full by the end of the year.

A ____ on your credit report tells the credit bureau not to release your financial records to anyone without your consent.

A factor in the development of credit scores is

Credit bureaus compile information from

The Fair Credit Reporting Act requires that reports contain accurate,relevant,and recent information,and that only bona fide users be permitted to review a file for approved purposes.

Credit cards allow repeated use of credit as long as you make the minimum monthly payment.

Credit is a term used to describe any situation in which goods,services,or money is received in exchange for a promise to repay at a future date.