Personal Finance Test 2
5 C's
Character, Capacity, Capital, Collateral, Conditions
true
Credit cards are convenient when charging a hotel room or rental car
350-850
FICO scores generally range between
true
Interest on credit card is not tax deductible
less- decreases amount of money you have in the future
Trade off of using credit does it make more money available or less?
debit card
electronically subtracts money from saving or checking
60 days
if you are denied credit you can ask for a copy of your credit report within how many days
true
if you pay your balance IN FULL during the grace period you're getting a loan for free.
false
information gathered from a loan application establishes your credit rating
true
most information in your credit file may be reported for only 7 years
collateral
property pledged to back a loan
bankruptcy
remains on your credit file for at least 7-10 years
closed ended
specific purpose with specific amount
opened ended
store credit card--- open forever or until its closed on you.
true
the fair credit reporting act of '71 limits who can obtain your credit report
The temptation to overspend
the greatest disadvantage of using credit is
true
the higher your FICO score, the lower your risk to creditors
family
the least expensive loans you can borrow are from
true
the longer the loan, the more interest you pay
line of credit
the maximum amount of money the creditor has made available to you
home equity loan
used for major expenses like home improvements of education
FICO and Vantage
what are the 2 scores used by creditors
Zero
what is the finance charge during grace period