ch 5 review

Information about a personal bankruptcy may be reported in your credit file for

10 years

A typical grace period offered by many credit card issuers is

20-25 days

A credit card holder who pays off his balances in full each month is known as

A convenience user.

Which of the following is NOT associated with credit cards?

A debit to your checking account

When misused, credit can result in

All choices are correct

The Equal Credit Opportunity Act (ECOA) prohibits a lender from discriminating based on

All of these are prohibited.

Which of the following questions is NOT needed before deciding how and when to make a major purchase?

All of these questions should be considered.

A direct loan for personal purposes, home improvements, or vacation expenses is called

An installment cash credit.

Which of the following acts sets procedures for promptly correcting billing mistakes, refusing to make credit card or revolving credit payments on defective goods, and promptly crediting your payments?

Fair Credit Billing Act of 1975

Credit reports can be obtained for all of the following reasons except

Inquiry by a neighbor.

A loan that must be repaid in total on a specified day, usually within 30 to 90 days, is

Single lump-sum credit.

Who is responsible for a loan repayment?

The cosigner and/or the borrower

Which of the following electronically subtracts money from your savings or checking account to pay for goods and services?

a debit card

A prearranged loan for a specified amount that a consumer can use by writing a special check is known as

a revolving check credit

The finance charge for credit includes all of the following except

amount borrowed

The APR is the percentage cost of credit on a(n) ______________ basis.

annual

The question "What are your assets and net worth?" relates to

capital

The question "Will you repay the loan?" relates to

character

Consumer Credit

dates back to colonial times

The periodic charge for the use of credit is called

interest

Which of the following is often considered to offer the least expensive loans (loans with low interest)?

parents or family members

Credit bureaus get their information from all of the following sources except

references

Which of the following is the only online source authorized to provide you with a free copy of your credit report annually? Which of the following is the only online source authorized to provide you with a free copy of your credit report annually?

www.annualcreditreport.com

If you think your identity has been stolen, which of the following actions does the Federal Trade Commission recommend you take immediately?

File a police report.

Which of the following items should be shredded to protect yourself from identity theft?

Papers with personal information