Exam 6: Using Credit

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The decline in housing prices made it [harder | easier] for households to refinance their mortgages.

Credit bureaus

The lender uses a credit application to determine whether the borrower has the ____ to handle the debt.

The most common method used by lenders to apply finance charges to credit cards is the average daily balance including new purchases method.

One can be overusing credit even though he can afford to make minimum monthly payments on time.

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

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

A Chapter 13 bankruptcy filing results in the discharge of most of your debts.

After the Credit Card Act of 2009 was passed,late payments dropped but defaults increased.

When paying for something with a check,don't give your ____ number.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You are likely to have financial difficulty if your personal credit obligations exceed [15% | 20%] of your take home pay.

Generally,finance charges are computed only on the unpaid balance from previous months' purchases.

The required monthly payment on an open account will be the smaller of a minimum dollar amount or a specified percentage of the balance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Your chances of being approved for a loan [increase | decrease] the higher your credit score.

Your account with the utility company is an example of open account credit.

A debt safety ratio of 25% might be a signal of financial trouble ahead.

Rebate cards work best for those who use the rebates and

Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

Prepaid cards are referred to as electronic wallets.