Personal Finance Ch. 5-8

Borrowing $ to pay old debt is one of the

16 danger signals of potential debt problems.

Most information in your credit file may be reported only for

7 years.

Most reliable source of product information is likely to come from

a food source ingredient label.

A good example of a closed-end credit is

a morgage loan.

If you desire some assurance of quality when buying a used car the best warrenty is usually offered from

a new car dealer.

To avoid high fees for loans

a person should not borrow from a pawn shop.

The convenience of using a financial institution with 24 hour banking requires

a trade-off of personal service.

Arbitration differs from madiation in that

arbitration is legally binding.

Debit card debits your account

at the moment you buy goods/services.

Most commonly purchased type of credit insurance is

credit life insurance.

Marital status is included in your

credit report.

Checking accounts are frequently referred to as

demand deposits.

Most cars bought from private parties have no

express waranty.

Federal Trade Commission enforces the

fair debt collections practices act.

Toal $ amount you pay to use credit is called the

finance charge.

Most expensive loans are availabe from

finance companies.

Excesive in debtedness can result in

heavy drinking, neglect of children, marital problems, and drug abuse.

The funds deposited into a checking account can be restricted for use by a

holding period.

Rule of 78 is used by creditios to determine

how much interest you have payed at any point in the loan.

Open-dating provides

information on freshness.

Another name for closed-end credit is

installment credit.

Line of credit is the

maximum amount of credit you are alllowed by a creditor.

Purpose of a service contract is to

protect a product owner from expensive repairs.

In determining your credit capacity you 1st

provide for basic necesitites (such as morgage or rent).

Morgage companys main purpose is

providing lonad to purchase homes.

If you are denied credit by a bank or credit union you should

question your ability to afford the loan.

Best way to obtain credit rating is to

reppay your debts on time.

Purpose of small claims court is to

resolve minor consumer complaints.

Another name for open-end credit is

revolving credit.

Time deposists consists of

savings accounts.

Storage of funds for future use is a purpose of

savings services.

If you recieve a phone call from a debt collector they must

send you a written notice with in 5 days.

If you have a problem with your creditior, the best solution is to

solve your problem with the creditor.

In the bank reconsiliation process, service fees should be

subtracted from the checkbook balance.

Sticker price on a car refers to the

suggested retail price of a new car.

If you co-sign for a loan you'll have to pay up to the full amount of the debt if

the borrower doesnt pay.

Parents or family members are a source of

the least expensive loan.

Express waranty is a specific agreement created by

the seller or manufactuor.

Am implied warranty that comes with a used car is that

the vehicle must be in operation condition.

If your credit application is denied you are entitled

to know the specific reason.

The purpose of a debit card is

to transfer money electronically.

If you have trouble paying your bills

try to solve the problem with your creditor.

Items produced for retail stores are commonly sold

under a store brand.

Impulse buying refers to

unplanned spending.

Revolving credit is a prearranged loand for a specified amount you can use by

writing a special check.