Exam 6: Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

If your credit card charges 18 percent interest, what would be the interest on a balance of $1900 for 30 days after the payment due date?

Use of Financial Calculator TI BA II Plus required. You have $26 in creditors insurance, which is debited to your card monthly to cover payments if you are disabled. You charged $800 to your card last month and you paid $400 on your account. What will be the credit charge at 1.75 percent per month using the adjusted balance method?

Your credit report can be requested online and should be checked periodically for errors.

The longer you maintain relationships with one creditor, the lower your credit score will be.

A high credit score means that you will pay a higher interest rate.

What steps can you take to improve your credit score?

To have credit in the future, you must have used it wisely in the past.

Discuss at least three disadvantages of using credit.

Using a credit card offers you free financing until the due date on your credit card statement.

Those that use credit cards as their sole source of credit will have a lower credit score.

The credit score is not allowed to reflect your sex, race, or marital status.

Identity thieves that obtain your information from the magnetic strip on your credit card are using a technique known as

Credit cards are commonly used for purchases such as clothing, car repairs, or the purchase of a new car.

With a credit rating over 500, you should have no problem getting approval for credit purchases.

A proposal to creditors is used by an insolvent debtor having difficulty meeting payments

Posing as an employee of a brokerage firm to obtain information to allegedly update your account information is an example of

Investing your money first is better than paying down a credit card debt.

Sometypes of instalment loans allow Raymond to pay interest only until the maturity date when the loan is due.

Despite a high credit score your income level may be the determining factor that will cause a lender to not give you a loan.

If John wants to borrow money to purchase a new car, he can apply for an instalment loan or instalment credit.