Chapter 8: Credit

As percentage rate of interest on a credit transitions increase the finance charges

Increase

Which of the following is a type of closed end credit?

Installment loan

Credit cards that allow consumers to use credit at many places can be obtained through ____.

banks, credit unions, and credit card issuers

A consumer should check out his or her credit rating periodically to__________

be sure the information on file is correct

A consumer should check out his credit rating periodically to

be sure the information on fire is correct

You can damage a good credit rating by

ignoring bills you cannot pay until the creditors take collection action

Credit is available most readily to

people with a good credit rating

The Five C's of Credit

-Character - Capacity -Capital -Collateral -Conditions

Which of the following is NOT an advantage of using credit?

-Convenience -a source of cash for emergencies -use of good & services while paying them - EASE OF SPENDING MONEY YOU DO NOT HAVE

Which of the following is NOT one of the national credit reporting agencies?

-NATIONAL CREDIT UNION ADMINISTRATION -Experian -Equifax -Transunion

The amount you pay to use credit depends on all of the following fairs except______________

-REASON FOR USING CREDIT -length of the repayment period -amount of credit used -annual percentage rate charged

Important to consider when comparing credit cards

-method of computing the balance (simple vs. compound) -Grace Period -annual percentage rate of interest *ALL OF THE ABOVE*