chapter 17
true
if the economy is slowing down and unemployment is rising, creditors may be less willing to loan to you
credit rating
measure of creditworthiness based on an analysis of your credit and financial history
character
responsible attitude toward honoring obligations
true
some banks allow minors to establish savings accounts with small balances and waive normal fees charged to other depositors
cosigner
someone who promises to pay if the borrower fails to pay
true
the Account Detail section of a credit report shows the monthly balances of all a consumer's credit accounts, as well as credit limits on each account
false
the Fair Credit Billing Act prohibits creditors from denying credit to someone based solely on marital status
true
the fee charged by a debt collector is often about half of the amount collected
false
when a bill is paid within fifteen days of its due date, this is considered an automatic grace period
credit score
when a credit bureau adds up your credit points, they result in your
true
when another person opens credit in your name, this can cause a significant drop in your creditworthiness
false
when you are denied credit, you can obtain a credit report for $15 if you ask within 30 days of being denied
credit report
written statement of a consumer's credit history
true
you can do anything that credit guard service companies can do; when you hire a credit guard service, you are simply paying for the convenience of having someone else do it for you
good credit rating
Simon pays his bills on the due date or within the grace period
credit freeze
a consumer request that requires the credit bureaus to deny all access to a a consumer's credit information or files
true
any public information becomes part of your credit record
true
before granting you credit, a creditor will check into your past credit performance
true
businesses can make a credit inquiry on you without your permission, but usually they do not count toward your credit score
false
collateral refers to financial assets you possess that are worth more than your debts
credit history
complete record of your borrowing and repayment performance
subscribers
credit bureaus gather information from businesses who pay a monthly fee to the credit bureau
credit bureaus
credit reports are issued by
fair credit raiting
earned by a customer who usually pays all bills within the grace period, but occasionally takes longer
six months
first loan you take out from your bank or credit union should be for no longer than
open a savings account
first step most people take to establish a good credit record
Consumer Credit Protection Act
law requires to fully inform consumers about all costs of a credit purchase before an agreement is signed
number of recently opened accounts and the number of recent credit inquiries
on a FICO score, new credit is rated based on
false
once credit is established, most people should plan on having at least eight to ten credit cards at any given time
debt collector
person or company hired by a creditor to collect the overdue balance on an account
colalteral
property pledged to assure repayment of a loan
capacity
the financial ability to repay a loan with present income
true
the two major classifications used to evaluate consumers' creditworthiness are credit rating and credit score
discrimiantion
treating people differently based on prejudice rather than individual merit
