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Consumers Ed > Credit > Flashcards

Credit Flashcards

0
Q

What would be the least expensive source credit

A

Bank

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1
Q

What cannot give you a car loan

A

Credit bureau

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2
Q

Which type of insurance can a lender require you to purchase

A

Property

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3
Q

What is not needed to calculate the interest charged on a loan

A

Equity

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4
Q

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

A

Your average daily balance

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5
Q

Which type of bankruptcy is known as straight bankruptcy

A

Chapter 7

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6
Q

What refers to the term of a loan

A

Time

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7
Q

What would not be an addition to a credit card balance

A

A credit

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8
Q

What law stops credit discrimination based on sex

A

Equal credit protection act

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9
Q

How many bank credit cards can a person legally carry

A

No limit

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10
Q

What refers to The amount of a loan

A

Principle

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11
Q

What is issued to compare loan costs

A

ARP

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12
Q

What is least likely to appear in a credit report

A

Rent payments

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13
Q

What long requires creditors to furnish the true cost of credit

A

Truth in lending law

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14
Q

What might not be required for a loan from the bank

A

Collateral

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15
Q

What method charges interest only on unpaid balance

A

Simple interest

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16
Q

What would not be used to calculate your credit score

A

Your income

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17
Q

What type of bankruptcy creates a credit supervised payment plan

A

Chapter 13

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18
Q

How often are credit card statements received

A

Monthly

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19
Q

Which method of calculating interest is the cheapest for the borrower

A

Simple interest

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20
Q

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

A

Fair credit reporting act

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21
Q

What term does not refer to a credit card

A

Unlimited credit

A right

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22
Q

If you cannot make your loan payment which of these should you do first

A

Call the creditor

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23
Q

What would not be true of credit card

A

Discounted

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24
Q

What is not a credit bureau

A

Fair Isaac

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25
Q

What is not a credit card cost

A

Cash advance

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26
Q

What law allows the borrower know the annual percentage rate bin charged

A

Truth in lending law

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27
Q

What will not be on the loan contract

A

Credit score

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28
Q

What is not a source of credit form a bank

A

Cash value of a loan

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29
Q

The purpose of consolidating debt is to make which of these possible

A

Lower payments

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30
Q

The term garnishment would result from which credit situation

A

Missed payments

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31
Q

Rent to own is an expensive source of credit

A

True

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32
Q

Credit cards are revolving charge accounts

A

True

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33
Q

A finance company is an inexpensive source of credit

A

False

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34
Q

You can charge any amount to your credit card

A

False

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35
Q

Commercial banks have the flexibility to meet any credit need

A

True

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36
Q

Pawnbrokers are in expensive source of credit

A

True

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37
Q

When you use your credit card you are actually borrowing money

A

True

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38
Q

Credit life insurance is designed to pay your debt after you die

A

True

39
Q

Credit life insurance can be required by a lender

A

False

40
Q

The truth in lending act sets interest rates on loans

A

False

41
Q

A Home mortgage an example of a unsecure loan

A

False

42
Q

The truth in lending act specifies the financial information that must be disclosed in the loan contract

A

True

43
Q

A home equity line of credit uses a home as collateral

A

True

44
Q

Adjustable-rate loans can adjust up but not down

A

False

45
Q

A loan contract will include the amount financed

A

True

46
Q

Retailers pay credit card issuers a percentage of the amount charged

A

True

47
Q

The only requirement for a credit card is that you must be 18 years of age

A

False

48
Q

You will have to pay a finance charge on your unpaid credit card balance

A

True

49
Q

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

A

True

50
Q

You can legally only use one bank credit card

A

False

51
Q

Credit score is your financial reputation

A

True

52
Q

Credit unions collect information about borrowers and sell it to creditors

A

False

53
Q

Credit bureaus are government agencies

A

False

54
Q

Rent payments and medical payments always appear in your credit history

A

False

55
Q

To maintain a good credit score always make sure your credit payments on time

A

True

56
Q

your creditors provide information about you to credit bureaus

A

True

57
Q

You must make a minimum payment each month on a credit card bill

A

True

58
Q

Bankruptcy provides you legal protection from your creditors

A

True

59
Q

All credit cards charge an annual fee

A

False

60
Q

You can be charged an extra fee for using your credit card to make cash advance

A

True

61
Q

Using a credit card is one of the least expensive ways to borrow money

A

False

62
Q

The credit card must be signed on the back

A

False

63
Q

Affinity cards are cosponsored by a bank in another company or institution

A

True

64
Q

The highest possible credit score is 1250

A

False

65
Q

A credit card and debit card are basically the same - you are paying later

A

False

66
Q

What would not be found on a credit card application

A

Medical information

67
Q

What law ensures that consumers know the true cost of credit

A

Truth in lending law

68
Q

What law protects customers from being harassed or called at their place of employment about overdue credit payments

A

Fair credit billing act

Fair debt collection act

69
Q

What law stops credit discrimination based on a person’s gender

A

Equal credit protection act

70
Q

What would not not be found on the front of your credit card

A

Your pin number

Credit limit

71
Q

What would not necessarily be listed on your credit card statement

A

Item purchased

72
Q

What do we call The amount owed on a loan at any given time

A

Balance

73
Q

Which term means a loan without collateral

A

Unsecured

74
Q

What financial institution requires you to be a member to be considered for a loan

A

Credit union

75
Q

What do we call the periodic payments that are made to repay a loan

A

Installments

76
Q

What type of credit is least likely to be reported to a credit bureau

A

Rent payment

Utility payment

77
Q

What law protects consumers from having to pay incorrect charges on a credit card statement

A

Fair credit reporting act

78
Q

Which of the following is not one of the three C’s of credit
character capacity capital conscience

A

Capital

79
Q

Parents become this if they guarantee a loan made by their child

A

Co signer

80
Q

What is called the bringing several debts together under one new contract with a single monthly payment

A

Consolidation

81
Q

What is not a credit card that can be used for all types of purchases Visa MasterCard diners club or discover

A

Diners club

82
Q

In 18% annual percentage rate is what monthly rate

A

1.5%

just divide the number by 12

83
Q

What do you call the cost of borrowing money

A

Interest

84
Q

Which is the nickname for credit cards

A

Plastic

85
Q

What is the highest numeric credit score possible

A

850

86
Q

What factors are included in determining a persons credit score

A

Payment history and how much you owe or how much credit you used and length of your credit history

87
Q

What laws help protect a person in regard to their credit score

A

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
Q

What can a consumer do to protect their credit score

A

Know your score and don’t fall behind to credit card promotions and keep informed and in control of your credit card balance

89
Q

What are factors that decrease a person’s credit score

A

Hey late and not having paid it all and having an account charged off and filling bankruptcy and defaulting a loan

90
Q

What are the major credit score agencies

A

Equifax Trans Union’s and experain

91
Q

Are consumers entitled to know their credit score and how much they obtain that information

A

They can obtain it by requesting a credit report from their agency

92
Q

Does a consumer have to know what their credit score is

A

Yes the FARC a charges a reporting fee for knowing your credit score

93
Q

What four letter abbreviation is often used referring to a credit score

A

FICO means fair Isaac

94
Q

Five sources of credit people can use

A 
Credit unions 
banks 
friends 
family 
rent to own 
S and L

Consumers Ed (1 decks)

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