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.