Credit
Closed-end credit
A car loan is an example of ____.
Credit Bureau
A company that gathers, stores and sells credit information to business subscribers is a ____.
700
A consumer should try to keep their credit score at or near ____.
Garnishment
A legal process that allows part of your paycheck to be withheld for payment of a debt.
Chapter 7
A liquidation form of bankruptcy that wipes out most debts in exchange for giving up most assets.
Secured loan
A loan for which the borrower pledges property to ensure repayment
Closed-end Credit
A loan/flat amount issued for a specific period time. Installments paid until sum is paid in full.
Chapter 13
A reorganization form of bankruptcy for individuals that allows debtors to keep their property and use their income to pay a portion of their debts over three to five years.
Deferred billing
A service available to charge customers at a later date, or to begin installment payments at a later date.
Annual Percentage Rate
APR
D
An advantage of credit is ______. A. Purchasing power B. Emergency funds C. Deferred billing D. All of the above
Service Credit
An agreement to have a service performed now and pay for it later.
Revolving Credit Agreement
An all-purpose credit card, such as Visa, MasterCard, and Discover, is an example of which type of credit?
D
An disadvantage of credit is ____. A. Convenience B. Proof of purchase C. Deferred billing D. Finance charges
Truth in Lending Law
Another word for the Consumer Credit Protection Act of 1968 is....
5 C's of credit
Character, Capacity, Collateral, Conditions, Capital
Open-ended Credit
Ex. Credit Card (also known as revolving credit)
D
It is illegal to discriminate on the basis of which of the following in granting or denying credit? A. Bank affiliations B. Occupation C. Type of residence D. Marital status
D
It is lawful for creditors to ask you for ____. A. Your name B. A list of assets C. Your employment history D. All of the above
Collateral
Property pledged to assure repayment of a loan.
Grace Period
The amount of time you are given to pay your bill without penalty.
Balance
The amount that you owe at any given time on your credit card is known as the ____.
Credit report
The complete record of your borrowing and repayment performance is summarized in your ____.
An individual's credit worthiness
The five C's of credit are used to determine ____.
Finance Charge
The interest or money that is charged a borrower for the use of credit is the _______ _______.
Previous balance method
The most expensive way to figure the finance charge for the credit user.
Capacity
The part (one of the four "C's") of creditworthiness that pertains to a consumer's legal ability to enter into a contract.
Chapter 11
The type of bankruptcy most often used for businesses or the very wealthy.
Chapter 11
The type of bankruptcy that allows businesses to continue operating under court supervision as they repay their restructured debts.
Chapter 7
This type of bankruptcy is also known as "straight bankruptcy".
Chapter 13
This type of bankruptcy is also known as "wage earners" bankruptcy.
$50
Under the Consumer Credit Protection Act, if you report your credit card lost or stolen, your liability is limited to ____.
D
What is a major cause of bankruptcy? A. Emotional spending B. Injury/Illness (Medical bills) C. Poor planning D. All of the above
A
Which of the following is not an advantage of using credit? A. It allows you to shop only at one store. B. It is convenient. C. It is safer than carrying large sums of money. D. It is useful in emergency situations.
C
Which of the following is not an example of service credit? A. Telephone services B. Utility services C. Rent D. Hairdressing services
D
Which of the following is not information that can be obtained through public records? A. Marriage license applications B. Bankruptcies C. Lawsuits D. Medical records
D
Which of the following is one of the three national credit bureaus ____. A. Equifax B. Experian C. TransUnion D. All of the above
B
Which of the following is the most serious step in dealing with credit problems? A. Debt adjustment B. Bankruptcy C. Credit counseling D. The 20/10 Rule
Collateral
assets pledged to assure repayment of a loan.
Interest
money that is charged a borrower for the benefit of the use of credit.
Line of credit
pre-established amount that can be borrowed on demand with no collateral.
Principal
the amount borrowed.
Creditor
the entity to whom you owe money.
Borrower or Debtor
the person who borrows the money.
Finance charge
the total dollar amount of all interest and fees you pay for the use of credit.
Capital
your accumulated assets.
