Family Finance Module 5 Ch. 6
If the credit bureau cannot reinvestigate an item on your credit report in ____ days, the item must be removed from your file
45
Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?
Groceries
The best use of credit is probably to
obtain an education.
The contract for a loan is called the
promissory note.
Negative credit information (excluding bankruptcy) can generally be included on a credit file for ____ years.
seven
Data on bankruptcy can be included in your credit file for ____ years.
10
Your total liabilities excluding mortgage debt should not exceed what percentage of your net worth excluding the value of your home if you are to have a manageable level of debt?
33
Which of the following can be obtained using credit?
All of These
Credit bureau files are used to help evaluate applications for
All of these
Which of the following is generally not part of the process of opening a credit account?
Appraisal of assets
Negative aspects of using credit include which of the following?
Negative aspects of using credit include both loss of financial flexibility as well as overspending.
What do credit bureaus do?
They collect and provide credit information.
Who should set your debt limit?
You
Creditors can legally require information about ____ on a credit application.
age
The best measure of the true cost of credit is the
annual percentage rate of interest.
A lender can legally discriminate in granting credit based on
credit history.
Bankruptcy
All of these.
If you find an error or omission on your credit report, you should notify the credit bureau that you wish to exercise your right to reinvestigation under the
FCRA
Which of the following is the least appropriate reason for using credit?
To consolidate debts
Refinancing a loan for more money than was originally owed is called a(n)
add-on loan.
The only real source for a free credit report is through
annualcreditreport.com
ending by sales finance companies are most commonly associated with
borrowing to buy big-ticket items such as vehicles
Which of the following is a court-sanctioned procedure by which a portion of your wages are set aside by your employer to pay a debt?
garnishment
People slip up in building and maintaining good credit when they
pay more than 14 percent of disposable income toward non-mortgage debt payments.
Lending designed specifically for borrowers with low credit scores is called
subprime lending.
