Credit Flashcards
(95 cards)
0
Q
What would be the least expensive source credit
A
Bank
1
Q
What cannot give you a car loan
A
Credit bureau
2
Q
Which type of insurance can a lender require you to purchase
A
Property
3
Q
What is not needed to calculate the interest charged on a loan
A
Equity
4
Q
What method is most commonly used to calculate credit card finance charges
A
Your average daily balance
5
Q
Which type of bankruptcy is known as straight bankruptcy
A
Chapter 7
6
Q
What refers to the term of a loan
A
Time
7
Q
What would not be an addition to a credit card balance
A
A credit
8
Q
What law stops credit discrimination based on sex
A
Equal credit protection act
9
Q
How many bank credit cards can a person legally carry
A
No limit
10
Q
What refers to The amount of a loan
A
Principle
11
Q
What is issued to compare loan costs
A
ARP
12
Q
What is least likely to appear in a credit report
A
Rent payments
13
Q
What long requires creditors to furnish the true cost of credit
A
Truth in lending law
14
Q
What might not be required for a loan from the bank
A
Collateral
15
Q
What method charges interest only on unpaid balance
A
Simple interest
16
Q
What would not be used to calculate your credit score
A
Your income
17
Q
What type of bankruptcy creates a credit supervised payment plan
A
Chapter 13
18
Q
How often are credit card statements received
A
Monthly
19
Q
Which method of calculating interest is the cheapest for the borrower
A
Simple interest
20
Q
What law allows you to get a free copy of your credit report
A
Fair credit reporting act
21
Q
What term does not refer to a credit card
A
Unlimited credit
A right
22
Q
If you cannot make your loan payment which of these should you do first
A
Call the creditor
23
Q
What would not be true of credit card
A
Discounted
24
What is not a credit bureau
Fair Isaac
25
What is not a credit card cost
Cash advance
26
What law allows the borrower know the annual percentage rate bin charged
Truth in lending law
27
What will not be on the loan contract
Credit score
28
What is not a source of credit form a bank
Cash value of a loan
29
The purpose of consolidating debt is to make which of these possible
Lower payments
30
The term garnishment would result from which credit situation
Missed payments
31
Rent to own is an expensive source of credit
True
32
Credit cards are revolving charge accounts
True
33
A finance company is an inexpensive source of credit
False
34
You can charge any amount to your credit card
False
35
Commercial banks have the flexibility to meet any credit need
True
36
Pawnbrokers are in expensive source of credit
True
37
When you use your credit card you are actually borrowing money
True
38
Credit life insurance is designed to pay your debt after you die
True
39
Credit life insurance can be required by a lender
False
40
The truth in lending act sets interest rates on loans
False
41
A Home mortgage an example of a unsecure loan
False
42
The truth in lending act specifies the financial information that must be disclosed in the loan contract
True
43
A home equity line of credit uses a home as collateral
True
44
Adjustable-rate loans can adjust up but not down
False
45
A loan contract will include the amount financed
True
46
Retailers pay credit card issuers a percentage of the amount charged
True
47
The only requirement for a credit card is that you must be 18 years of age
False
48
You will have to pay a finance charge on your unpaid credit card balance
True
49
Most issuers of credit cards use the average daily balance method of computing credit card finance charges
True
50
You can legally only use one bank credit card
False
51
Credit score is your financial reputation
True
52
Credit unions collect information about borrowers and sell it to creditors
False
53
Credit bureaus are government agencies
False
54
Rent payments and medical payments always appear in your credit history
False
55
To maintain a good credit score always make sure your credit payments on time
True
56
your creditors provide information about you to credit bureaus
True
57
You must make a minimum payment each month on a credit card bill
True
58
Bankruptcy provides you legal protection from your creditors
True
59
All credit cards charge an annual fee
False
60
You can be charged an extra fee for using your credit card to make cash advance
True
61
Using a credit card is one of the least expensive ways to borrow money
False
62
The credit card must be signed on the back
False
63
Affinity cards are cosponsored by a bank in another company or institution
True
64
The highest possible credit score is 1250
False
65
A credit card and debit card are basically the same - you are paying later
False
66
What would not be found on a credit card application
Medical information
67
What law ensures that consumers know the true cost of credit
Truth in lending law
68
What law protects customers from being harassed or called at their place of employment about overdue credit payments
Fair credit billing act
| Fair debt collection act
69
What law stops credit discrimination based on a person's gender
Equal credit protection act
70
What would not not be found on the front of your credit card
Your pin number
| Credit limit
71
What would not necessarily be listed on your credit card statement
Item purchased
72
What do we call The amount owed on a loan at any given time
Balance
73
Which term means a loan without collateral
Unsecured
74
What financial institution requires you to be a member to be considered for a loan
Credit union
75
What do we call the periodic payments that are made to repay a loan
Installments
76
What type of credit is least likely to be reported to a credit bureau
Rent payment
| Utility payment
77
What law protects consumers from having to pay incorrect charges on a credit card statement
Fair credit reporting act
78
Which of the following is not one of the three C's of credit
character capacity capital conscience
Capital
79
Parents become this if they guarantee a loan made by their child
Co signer
80
What is called the bringing several debts together under one new contract with a single monthly payment
Consolidation
81
What is not a credit card that can be used for all types of purchases Visa MasterCard diners club or discover
Diners club
82
In 18% annual percentage rate is what monthly rate
1.5%
| just divide the number by 12
83
What do you call the cost of borrowing money
Interest
84
Which is the nickname for credit cards
Plastic
85
What is the highest numeric credit score possible
850
86
What factors are included in determining a persons credit score
Payment history and how much you owe or how much credit you used and length of your credit history
87
What laws help protect a person in regard to their credit score
Equal credit opportunity act - prohibits credit discrimination on the basis of race color religion sex marital status or age
credit card - provides important consumer credit protection
88
What can a consumer do to protect their credit score
Know your score and don't fall behind to credit card promotions and keep informed and in control of your credit card balance
89
What are factors that decrease a person's credit score
Hey late and not having paid it all and having an account charged off and filling bankruptcy and defaulting a loan
90
What are the major credit score agencies
Equifax Trans Union's and experain
91
Are consumers entitled to know their credit score and how much they obtain that information
They can obtain it by requesting a credit report from their agency
92
Does a consumer have to know what their credit score is
Yes the FARC a charges a reporting fee for knowing your credit score
93
What four letter abbreviation is often used referring to a credit score
FICO means fair Isaac
94
Five sources of credit people can use
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Credit unions
banks
friends
family
rent to own
S and L
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