chapter 8 personal finance

Which of the following might be included in your credit report? your address your marital status your occupation all of the above can be included in your credit report

all of the above can be included in your credit report

The financial ability to repay a loan with present income is known as cash flow. capacity. consideration. conditions

capacity

A responsible attitude toward honoring obligations is called ____

character

Property pledged to assure repayment of a loan is called

collateral

A(n)____ is someone who promises to pay if the borrower fails to pay.

cosigner

Credit reports are issued by your employer. credit bureaus. credit unions. banks and savings and loans.

credit bureaus

A consumer request that requires the credit bureaus to deny all access to a consumer's credit information or files is called a credit guard. garnishment. line of credit. credit freeze.

credit freeze

A(n)____ is a person or company hired by a creditor to collect the overdue balance on an account.

debt collector

is treating people differently based on prejudice rather than individual merit.

discrimination

The Consumer Financial Protection Bureau was created by the Fair Credit Reporting Act. Equal Credit Opportunity Act. Dodd-Frank Wall Street Reform and Consumer Protection Act. Consumer Credit Protection Act.

dodd-frank wall street reform and consumer protection act

an_____ credit rating is earned by a customer who usually pays all bills within the grace period, but occasionally takes longer.

fair

Any negative information that could harm your ability to get credit remains in your credit report for 10 years. true or false

false

Collateral refers to financial assets you possess that are worth more than your debts. true or false

false

Once credit is established, most people should plan on having at least eight to ten credit cards at any given time. true or false

false

The Fair Credit Billing Act prohibits creditors from denying credit to someone based solely on marital status. true or false

false

When a bill is paid within 15 days of its due date, this is considered an automatic grace period. true or false

false

When you are denied credit, you can obtain a credit report for $15 if you ask within 30 days of being denied true or false

false

Simon pays his bills on the due date or within a ten-day grace period. This would probably earn him a(n) good credit rating. excellent credit rating. fair credit rating. poor credit rating.

good credit rating

Your credit ____is the complete record of your borrowing and repayment performance

history

Which of the following is often the first step people take to establish a good credit record? open a store credit account open a savings account apply for a credit card apply for a car loan

open a savings account

Your credit ____ is a measure of creditworthiness based on an analysis of your credit and financial history.

rating

A credit_____ is a written statement of a consumer's credit history.

report

When a credit bureau adds up your credit points, they result in a credit

score

Credit bureaus gather information from businesses, called _____, that pay a monthly fee to the credit bureau. brokerage firms subscribers debtors retailers

subscribers

This law requires lenders to fully inform consumers about all costs of a credit purchase before an agreement is signed. the Fair Credit Billing Act the Fair Credit Reporting Act the Credit CARD Act the Consumer Credit Protection Act

the consumer credit protection act

On a FICO score, new credit is rated based on the mix of credit accounts a consumer has. the average age of all of a consumer's credit accounts. whether accounts are past due or paid as agreed. the number of recently opened accounts and the number of recent credit inquiries

the number of recently opened accounts and the number of recent credit inquires

Before granting you credit, a creditor will check into your past credit performance true or false

true

Businesses can make credit inquiries on you without your permission, but usually those inquiries do not count toward your credit score. true or false

true

Credit bureaus are permitted to charge a reasonable fee for freezing or unfreezing a consumer's credit reports and files. true or false

true

If the economy is slowing and unemployment in your area is rising, creditors may be less willing to grant you a loan. true or false

true

If you hire a credit guard service company, you will be notified whenever anyone accesses your credit file for any reason. true or false

true

Some banks allow minors to establish savings accounts with small balances and waive normal fees charged to other depositors. true or false

true

The Account Detail section of a credit report shows the monthly balances for all of a consumer's credit accounts as well as credit limits on each account. true or false

true

The fee charged by a debt collector is often about half of the amount collected. true or false

true

The two major factors used to evaluate consumers' creditworthiness are credit rating and credit score. true or false

true