Chapter 8: Credit
As percentage rate of interest on a credit transitions increase the finance charges
Increase
Which of the following is a type of closed end credit?
Installment loan
Credit cards that allow consumers to use credit at many places can be obtained through ____.
banks, credit unions, and credit card issuers
A consumer should check out his or her credit rating periodically to__________
be sure the information on file is correct
A consumer should check out his credit rating periodically to
be sure the information on fire is correct
You can damage a good credit rating by
ignoring bills you cannot pay until the creditors take collection action
Credit is available most readily to
people with a good credit rating
The Five C's of Credit
-Character - Capacity -Capital -Collateral -Conditions
Which of the following is NOT an advantage of using credit?
-Convenience -a source of cash for emergencies -use of good & services while paying them - EASE OF SPENDING MONEY YOU DO NOT HAVE
Which of the following is NOT one of the national credit reporting agencies?
-NATIONAL CREDIT UNION ADMINISTRATION -Experian -Equifax -Transunion
The amount you pay to use credit depends on all of the following fairs except______________
-REASON FOR USING CREDIT -length of the repayment period -amount of credit used -annual percentage rate charged
Important to consider when comparing credit cards
-method of computing the balance (simple vs. compound) -Grace Period -annual percentage rate of interest *ALL OF THE ABOVE*