Exam 6: Building and Maintaining Good Credit

Advantages of credit use include increased protection against rip-offs and frauds.

The percentage of your total credit limits that is actually owed is called your

The additional dollar cost for using credit is referred to as the APR.

Negative credit information of all types can be kept on your credit bureau file for up to five years.

A pawnshop will normally loan an amount equal to one-half or less of the value of the item pawned.

Collection agencies may telephone a debtor's employer to obtain financial information.

Your continuing record of credit usage is called your credit

Negative aspects of using credit include which of the following?

Credit scoring systems tend to ignore the degree to which you owe a high percentage of the available credit limits on your credit cards.

Having both a checking and a savings account can help one get credit and at lower rates.

It is illegal for a creditor to charge different interest rates to different borrowers.

Credit scores can dictate whether you will be granted credit and at what interest rates.

Misusing credit and not paying bills on time can damage employment prospects.

You should change the marital status linked to your credit card account should you become married,separated,or divorced.

Dual-earner households should consider lower debt limits as a percentage of income.

Divorce could affect the creditworthiness of both partners.

Lenders pay a fee for each credit report requested.

Repossession is a legal proceeding by which the lender seizes an asset for nonpayment of a loan.

The lower the annual percentage rate of interest (APR),the higher the cost of credit.

Standardization of credit figures (total finance charge in dollars and the annual percentage rate of interest)is required by the