PFL -- Credit -- Chapter 7 Flashcards
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achieving financial responsibility means that life will always be easy and happy
false
buying luxury items while basic needs are not being met is an example of financial irresponsibility
true
the first step in creating a buying plan is defending your spending goal
true
an extended warranty covers the repair costs beyond the original warranty period
true
each purchase involves 2 choices: what to buy and how to pay for it
true
consumer loans usually have variable interest rates because they are unsecured loans
false
a lender may require a borrower to provide collateral for a loan
true
with a line of credit there is no maximum amount that can be borrowed
false
many merchants encourage their customers to use store credit card accounts
true
without credit many people would have to wait to buy things that could save them time and money
true
when you report a dispute on your credit card statement, the credit card company must resolve the dispute within a certain time period
true
if you pay the full amount owed on your credit card each month, you can avoid paying interest charges on an outstanding balance
true
a fee that is charged for violating a credit card agreement is called a rebate
false
low introductory rates on credit cards often last 6 months to a year
true
credit card issuers can lower your credit limit any time
true
if you are charged an over-the-limit fee by your credit card company, yout credit score will not be affected
false
easy access credit is usually a good deal for consumers, they should respond promptly to avoid hidden costs
false
using credit provides increased spending power
true
when you are financially responsible, you are able to meet your own needs by carefully managing your resources
true
which of the following is a symptom of financial irresponsibility
all of the above
when you receive your credit card statement you should
all of the above
which of the following is the final step in creating a buying plan
set a spending limit
a good buying plan begins with
evaluating your wants and needs
standards or rules by which something can be judged are called
criteria
the person or company who extends credit to a borrower is called the
creditor
the ability to receive services such as care by a utility, and pay for them later is called
service credit
credit for a set amount that is to be paid off in a set period of time is called
installment credit
which of the following types of credit requires that you pay the balance in full each month
charge card
on a credit card with a variable rate of interest
all of the above
when you dispute an item on your credit card statement
you can withhold payment of the disputed amount
if you try to charge more than your limit on your card
both a and b
which of the following actions by a credit card company is illegal
raising rates on existing balances
which of the following is an example of easy access credit
instant credit offer
which of the following online activities should be avoided
online pop-up ads offering credit
which of the following types of credit usually has a fixed rate of interest for a set period of time
consumer loan
transunion, equifax, and experian are all examples of
credit bureaus
if you are denied credit, how long after the denial do you have to request a free credit report
one month (30 days)
