Chapter 17-credit Records And Laws Flashcards
Answers questions about how bills have been paid, how many bills you have had and what type, how much total credit you have been given, and how much credit appears to be outstanding now
Credit history
A responsible attitude toward paying bills and meeting obligations on time
Character
A credit bureau issues a written statement which itemizes accumulated information about a person through subscribers and public records
Credit reports
The Consumer Credit Protection Act of 1968
Truth-in-lending law
The ability to repay a loan or make payments on a debt out of current debts
Capacity
A business that accumulates, stores, and distributes credit information to its members
Credit bureau
A person hired to collect the balance due
Debt collector
The act of treating people differently based on prejudice rather than individual merit
Discrimination
A measure of credit worthiness based on analysis of the consumer’s financial history
Credit rating
A numb assigned by FICO indicating person’s credit worthiness
FICO score
Your credit history is an important record of your past experiences with credit, and you have the right and responsibility for its accuracy
True
A credit bureau is a non profit organization established by members for the benefit of members
False
Most large credit bureaus are computerized clearing houses that search for and retrieve information to make reports
True
If you are denied credit based on credit report, inaccurate information in your file may be the cause
True
A debt collector is allowed to make calls any time in order to collect overdue balances
False
The Consumer Credit Protection Act prevents discrimination in the judgement of credit worthiness
False
Information gathered for credit reports may come from credit applications when you apply for credit
True
A point system of credit rating is based on assigning value to such things as employment, amount of income, amount of current debt, or number of late payments
True
An excellent credit rating results when you pay your bills on the due date every month and never miss a payment
False
A person who is considered a good credit risk usually meets five basic qualifications, called the five Cs of credit
True
It is lawful for creditors to ask you for personal information, such as employment and residence history, in order to determine your creditworthiness
True
If you believe your bill contains an error, there is no hurry in resolving the problem
False
What is an unlawful purpose for a credit report
Mailing list
The act that allows you to see your credit file at no charge within 30 days of credit denial
Fair credit reporting act
If you believe there is an error in your statement, your complaint must be written and mailed within….days after receiving it
60
Your letter of complaint must be acknowledged in….days
30
The creditor must correct the error or explain why it is correct within….days of receiving complaint
90
What is not a five C of credit
Challenge
The Truth-in-Lending Act limits your liability when credit card is lost or stolen to the first…unless it reported lost or stolen before it can be used
$50
To pay your bills on the due date or soon after gets a….rating
Good
What might not be included in a credit report
Medical history
Credit reports are issued by
Credit bureaus
Credit files are updated….by computers and search procedures
Daily
What is a good first step toward starting with credit
Opening a savings account
What could be apart of a credit record
Lawsuit, divorce, and bankruptcy
The act known for its provisions requiring full disclosure of all charges in a credit transaction
Truth-in-Lending Act
To see credit report without cost would be
Once per year from each
In many cases, people with poor credit rating have
Missed monthly payments, failed to pay back debt, and have filed for bankruptcy
Debt collectors are required to
Give consumers the chance to clarify and dispute bills
FICO score is between what and what, and what is the best place to be
300-850;760+
Existing debts, stability of employment, and personal factors that determine a person’s ability to meet financial obligations
Conditions
A member of a credit bureau who pays fees for use of the bureau’s service in collecting information and issuing reports
Subscriber
Type of rating used by credit bureau’s in determining a person’s credit worthiness
Credit rating
What is unlawful purpose for a credit report
Mailing list information
