personal finance

credit bureau

an agency that collects information on how promptly people and business pay their bills

when referring to credit, character means

borrowers attitude toward attitude credit obligations

a valuable asset that can be taken to satisfy a loan obligation, which is called __

collateral

conditions, one of the five c's of credit, refers to the general ___ condtitions that can affect your ___ to repay a loan.

economic: ability

long-term financing is ore costly than short-term financing because of higher ___ costs

interest

What is the best strategy if you can't make a payment on a debt

notify creditor and try to work out a modified payment plan

where does the consumer credit reporting act place the burden of proof for accurate credit information?

on crediting reporting agencies

the fair credit reporting act of 1971

regulates

why do banks prefer customers with high credit scores

the customer will most likely pay ills on time

lenders may determine a potential borrower's character by all of the following except

verifying the potential borrower's income

what would be the interest cost (simple interest) for a 2,000 loan with a 6% rate for a half of a year

$60

what would be interest cost for 3,000 with a 8% rate for nine months of a year

180

capacity refers to

borrowers financial ability to meet the credit obligation

a borrower's assets that exceed liabilities is called

capital

when evaluating the 5c's of credit ___ is determined by a borrowers assets or net worth

capital

5 c's?

character, capacity, capital, collateral, conditions