personal finance chapter 6

the baby boom generation currently represents about 30 percent of the population but holds nearly ____ percent of the debt outstanding

60

a good example of closed-end credit is:

a mortgage loan

a valuable asset pledged to assure loan payments and subject to seizure upon default is called

collateral

what should you do if your identity is stolen

contact the fraud department of each of the three major credit bureaus

which of the following federal consumer credit laws sets the procedures for promptly correcting billing errors

fair credit billing act

a creditor may ignore your retirement income in rating your application

false

college students are not a prime target for credit card issuers

false

if you cosign and the debt is not paid off, that fact does not become a part of your credit record

false

with an open-end credit, you pay back one-time loans in a specified period of time in equal amounts.

false

which one of the following is an advantage of using credit

funding an emergency expense

a credit arrangement that has no extra costs and no specific repayment plan is called

incidental credit

in determining your credit capacity you first provide for basic necessities such as

mortgage rent

if you think that your bill is wrong, you should first

notify the creditor in writing within 60 days after the bill was mailed

maryann lawrence wants to get a loan in just her name. she knows the creditor cannot

refuse her credit if she is creditworthy

credit is an arrangement to receive cash, goods, or services now and pay for them in the future

true

if someone has stolen your identity the federal trade commission recommends that you contact the fraud departments of each of the three major credit bureaus.

true

in the 5 Cs of credit, capital refers to your assets or net worth

true

installment sales credit is a loan that allows you to receive high-priced items such as large appliances or furniture.

true

the fair credit billing act sets the procedures for promptly correcting billing errors

true

if you have a complaint about consumer credit, you should first

try to solve your problem directly with the creditor