Consumers' Education Flashcards
what would be the least expensive source of credit
bank
what would not give you a car loan
credit bureau
what type of insurance can a lender require that you purchase
property
what is not needed to calculate the interest charges on a loan
equity
which method is most commonly used to calculate credit card finance charges
average daily balances
which type of bankruptcy is known as straight bacnkruptcy
chapter 7
what refers to a credit store
FICO
which if these refers to the term of a loan
time
what would not be an addition to a credit card balance
credit
what law stops credit discrimination based on sex
equal credit protection act
how many bank credit cards can a person legally carry
no limit
what refers to the amount of a loan
principle
what is used to compare loan costs
APR
what is least likely to appear in a credit report
rent payments
what law requires creditors to furnish the true cost of credit
truth-in-lending law
what might not be required for a loan from a bank
collateral
what method charges interest only on the unpaid balance
simple interest
which of these would not be used to calculate your credit score
income
what would not be found ont he front of your credit card
credit limit
what type of bankruptcy creates a court supervised payment plan
chapter 13
how often are credit card statements received
monthly
what method of calculating interest is the cheapest fo the borrower
simple interest
what is a good credit score
750
what term does not refer to a credit card
right
what law allows you to get a free copy of your credit report
fair credit reporting act
what term does not refer to a credit card
unlimited credit
if you cannot pay your loan payments what should you do first
call the creditor
what law keeps collection agencies from calling you at work
fair debt collecting act
what would not be true of a credit card
discounted
what is not a credit bureau
fair isaac
what is not a credit card cost
cash advantage
who would require you to sign a retail installment contract
car dealer
what best describes a credit score
credit reputation
what would not be a subtraction from a credit card balance
cash advantage
what law allows the borrower to know the Annual Percentage Rate charged
truth-in-lending act
what will not be a loan contract
credit score
what is not a good source of credit from a bank
cash value of loan
what is not a bank credit card
diners club
the purpose of consolidating debts is to make which of these possible
lower payments
the term garnishment could result from which credit situation
missing payments
waht is the highest credit score POSSIBLE
850
what are the 3 major credit score agencies
equifax, transition, experian
3 things that lower credit score
missing payments, short history, using more than 80% of available credit
5 sources people use
bank, friends, family, finance, credit unions
what would not be found on a credit card application
medical info
what would you not find ont he front of you card
PIN number
what is not necessarily listed on credit card statement
item purchased
what is the amount owed in a given time
balance
what is a loan without collateral
unsecured
where do you have to be a member
credit unions
what are the periodic payments that are made to repay a loan
installments
what is least likely to be reported to a bureau
rent
what is not a 3 c or credit
capital
PArents become this if the guarantee a loan made by their child
cosigner
what is bringing several debts together under one new contract with a single monthly payment
consolidation
an 18% annual percentage rate is what monthly rate (divide by12)
1.5%
what is the cost of borrowing money
interest
nickname for credit cards
plastic
tf rent-to-own is an expensive source of credit
true
tf credit cards are revolving charge accounts
true
tf a finance company is an inexpensive source of credit
false
tf you can change any amount on your credit card
false
tf commercial banks have the flexibility to meet any credit need
true
tf pawnbrokers are an expensive source of credit
true
tf when you use your credit card, you are actually borrowing money
true
tf credit life insurance is designed to pay your debt if you die
true
tf credit life insurance can be acquired by a lender
false
tf the truth-in-lending act sets interest rates on loans
false
tf a home mortgage is an example of an unsecured loan
false
tf the truth-in-lending act specifies teh financial informationthat must be disclosed in a loan contract
true
tf a home equity line of credit uses a house as collateral
true
tf adjustable rate loans can adjust up but not down
false
tf a loan contract will include the amount financed
true
tf retailers pay credit card issuers a percentage of the amount charged
true
tf the only requirement for a credit card is to be 18 years of age
false
tf you will have to pay a finance charge on your unpaid credit card and balance
true
tf most issuers of credit cards use the average daily balance method of computing credit card finance charges
true
tf you can legally use only one bank credit card
false
tf your credit score is your financial reputation
true
tf credit unions collect info about borrowers and sell it to creditors
false
tf rent paymetns and medical payments always appear in your credit history
false
tf to maintain good score always make payments on time
true
tf creditors provide info about you to bureaus
true
tf you must make a minimum payment each month
true
tf bankruptcy gives you legal protection
true
tf all cards charge annual fee
false
tf you can be charged extra fee for using card to make cash advantage
true
tf using card is one of least expensive ways to borrow $
false
tf card must be signed on back
flase
tf affinity cards are co-sponsored
true
tf highest possible score is 1250
false
