personal finance chapter 5 credit

what type of application does the ECOA cover?

the ECOA covers spplications for mortgages and home improvements

a good way to build a credit score is to:

pay bills when due

simple interest calculation

Interest(I)=Principle(P)*Rate(r)*time(t)

true or false: the reason why people choose long-term financing is becasue it is cheaper in the long run.

false

which of the following is NOT a condition that a lender may ask you to accept in order to reduce risk to the lender

fixed interest rate

if you purchase a new but defective item that the buisness will not accept as a return, what does the FCBA say?

the credit card company will allow you to stop payment on such item because it is defective

why do banks prefer customers with high credit scores?

the customer who has a high score will often pay bills on time

your FICO score is:

the score of your credit history

how does age play a role in creditworthiness?

typically when a person is old enough to sign a legal contract, their age becomes a secondary factor

a new credit scoring technique that is collaboration of the three credit reporting companies is taken from discussion of credit scores:

vantage Score

what are techniques for managing your credit history?

-check your credit report annually -review monthly bank and crdit card statements -look for errors and report

how does the Fair Credit Billing Act protect consumer credit ratings

by allowing consumers to create their own credit scores so they do not have to pay as much interest

which of the following is not true?

if your denial for credit is based on a credit report, you can see your file for a small fee