Chapter 2 lists

Question 1

What are the five most common sources of credit?

Answer 1

Charge/retail account
credit card
charge card
installment loan
layaway plan

Question 2

Five tips for managing credit

Answer 2

Pay bills on time
Don’t think of credit as extra cash
Never borrow more than your budget
Always pay other monthly bills on time
No more than 2 credit cards

Question 3

5 requirements to get a credit card

Answer 3

18
Steady employment
Fill out application for bank
History of paying bills on time
Permanent residence

Question 4

3 C’s of credit

Answer 4

Character
Capacity
Collateral

Question 5

6 steps to help with credit card fraud

Answer 5

Sign new credit cards
Save receipts from purchases
Don’t hand out your card number willy nilly
Purchase on secure sites
Destroy preapproved credit offers
Destroy old/canceled cards

Question 6

What 3 problems can deficit spending cause?

Answer 6

Stress/low morale
Hurt family and social life
Poor performance at school
(Who tf wrote these really like yeah being poor makes me sad big surprise)

Question 7

What three steps can you take to stop deficit spending

Answer 7

Stop borrowing
Cut expenses both big and small
Talk to creditors
(Love how two of these are “stop spending”)

Question 8

6 major types of insurance

Answer 8

Automobile
Property
Liability
Health
LIfe
Disability

Question 9

5 major types of auto insurance

Answer 9

Collision
comprehensive
Liability
Uninsured motorist protection
Emergency road service