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Exams > Consumers' Education > Flashcards

Consumers' Education Flashcards

0
Q

what would be the least expensive source of credit

A

bank

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1
Q

what would not give you a car loan

A

credit bureau

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2
Q

what type of insurance can a lender require that you purchase

A

property

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3
Q

what is not needed to calculate the interest charges on a loan

A

equity

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4
Q

which method is most commonly used to calculate credit card finance charges

A

average daily balances

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5
Q

which type of bankruptcy is known as straight bacnkruptcy

A

chapter 7

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6
Q

what refers to a credit store

A

FICO

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7
Q

which if these refers to the term of a loan

A

time

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8
Q

what would not be an addition to a credit card balance

A

credit

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9
Q

what law stops credit discrimination based on sex

A

equal credit protection act

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10
Q

how many bank credit cards can a person legally carry

A

no limit

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11
Q

what refers to the amount of a loan

A

principle

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12
Q

what is used to compare loan costs

A

APR

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13
Q

what is least likely to appear in a credit report

A

rent payments

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14
Q

what law requires creditors to furnish the true cost of credit

A

truth-in-lending law

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15
Q

what might not be required for a loan from a bank

A

collateral

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16
Q

what method charges interest only on the unpaid balance

A

simple interest

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17
Q

which of these would not be used to calculate your credit score

A

income

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18
Q

what would not be found ont he front of your credit card

A

credit limit

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19
Q

what type of bankruptcy creates a court supervised payment plan

A

chapter 13

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20
Q

how often are credit card statements received

A

monthly

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21
Q

what method of calculating interest is the cheapest fo the borrower

A

simple interest

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22
Q

what is a good credit score

A

750

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23
Q

what term does not refer to a credit card

A

right

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24
Q

what law allows you to get a free copy of your credit report

A

fair credit reporting act

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25
Q

what term does not refer to a credit card

A

unlimited credit

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26
Q

if you cannot pay your loan payments what should you do first

A

call the creditor

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27
Q

what law keeps collection agencies from calling you at work

A

fair debt collecting act

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28
Q

what would not be true of a credit card

A

discounted

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29
Q

what is not a credit bureau

A

fair isaac

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30
Q

what is not a credit card cost

A

cash advantage

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31
Q

who would require you to sign a retail installment contract

A

car dealer

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32
Q

what best describes a credit score

A

credit reputation

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33
Q

what would not be a subtraction from a credit card balance

A

cash advantage

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34
Q

what law allows the borrower to know the Annual Percentage Rate charged

A

truth-in-lending act

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35
Q

what will not be a loan contract

A

credit score

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36
Q

what is not a good source of credit from a bank

A

cash value of loan

37
Q

what is not a bank credit card

A

diners club

38
Q

the purpose of consolidating debts is to make which of these possible

A

lower payments

39
Q

the term garnishment could result from which credit situation

A

missing payments

40
Q

waht is the highest credit score POSSIBLE

A

850

41
Q

what are the 3 major credit score agencies

A

equifax, transition, experian

42
Q

3 things that lower credit score

A

missing payments, short history, using more than 80% of available credit

43
Q

5 sources people use

A

bank, friends, family, finance, credit unions

44
Q

what would not be found on a credit card application

A

medical info

45
Q

what would you not find ont he front of you card

A

PIN number

46
Q

what is not necessarily listed on credit card statement

A

item purchased

47
Q

what is the amount owed in a given time

A

balance

48
Q

what is a loan without collateral

A

unsecured

49
Q

where do you have to be a member

A

credit unions

50
Q

what are the periodic payments that are made to repay a loan

A

installments

51
Q

what is least likely to be reported to a bureau

A

rent

52
Q

what is not a 3 c or credit

A

capital

53
Q

PArents become this if the guarantee a loan made by their child

A

cosigner

54
Q

what is bringing several debts together under one new contract with a single monthly payment

A

consolidation

55
Q

an 18% annual percentage rate is what monthly rate (divide by12)

A

1.5%

56
Q

what is the cost of borrowing money

A

interest

57
Q

nickname for credit cards

A

plastic

58
Q

tf rent-to-own is an expensive source of credit

A

true

59
Q

tf credit cards are revolving charge accounts

A

true

60
Q

tf a finance company is an inexpensive source of credit

A

false

61
Q

tf you can change any amount on your credit card

A

false

62
Q

tf commercial banks have the flexibility to meet any credit need

A

true

63
Q

tf pawnbrokers are an expensive source of credit

A

true

64
Q

tf when you use your credit card, you are actually borrowing money

A

true

65
Q

tf credit life insurance is designed to pay your debt if you die

A

true

66
Q

tf credit life insurance can be acquired by a lender

A

false

67
Q

tf the truth-in-lending act sets interest rates on loans

A

false

68
Q

tf a home mortgage is an example of an unsecured loan

A

false

69
Q

tf the truth-in-lending act specifies teh financial informationthat must be disclosed in a loan contract

A

true

70
Q

tf a home equity line of credit uses a house as collateral

A

true

71
Q

tf adjustable rate loans can adjust up but not down

A

false

72
Q

tf a loan contract will include the amount financed

A

true

73
Q

tf retailers pay credit card issuers a percentage of the amount charged

A

true

74
Q

tf the only requirement for a credit card is to be 18 years of age

A

false

75
Q

tf you will have to pay a finance charge on your unpaid credit card and balance

A

true

76
Q

tf most issuers of credit cards use the average daily balance method of computing credit card finance charges

A

true

77
Q

tf you can legally use only one bank credit card

A

false

78
Q

tf your credit score is your financial reputation

A

true

79
Q

tf credit unions collect info about borrowers and sell it to creditors

A

false

80
Q

tf rent paymetns and medical payments always appear in your credit history

A

false

81
Q

tf to maintain good score always make payments on time

A

true

82
Q

tf creditors provide info about you to bureaus

A

true

83
Q

tf you must make a minimum payment each month

A

true

84
Q

tf bankruptcy gives you legal protection

A

true

85
Q

tf all cards charge annual fee

A

false

86
Q

tf you can be charged extra fee for using card to make cash advantage

A

true

87
Q

tf using card is one of least expensive ways to borrow $

A

false

88
Q

tf card must be signed on back

A

flase

89
Q

tf affinity cards are co-sponsored

A

true

90
Q

tf highest possible score is 1250

A

false

Exams (6 decks)

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