Personal Finance Ch. 9
A legal state in which the courts excuse a debtor from repaying some or all debt. In return, the debtor must give up certain assets and possessions
bankruptcy
Credit cards that allow consumers to use credit at many places can be obtained through ____.
banks, credit unions, and credit card users
A consumer should check out his or her credit rating periodically to ____.
be sure the info on file is correct
A loan that must be repaid with finance charges by a certain date
closed-end credit
An arrangement that allows consumers to buy goods or services and pay for them later
credit
Allows consumers to make purchases or borrow money on a time-payment plan
credit card
A record of a person's credit history and financial behavior
credit report
Credit cards are used primarily to obtain cash loans.
false
Credit reporting agencies automatically send credit reports to consumers each month
false
Open-end credit is used for loans
false
The forced sale of a property
foreclosure
You can damage a good credit rating by ____.
ignoring bills you cant pay until the creditors take collection action
The Equal Credit Opportunity Act prohibits discrimination in the granting of credit on the basis of all except ____.
inability to repay
As the percentage rate of interest on a credit transaction increases, the finance charges ____.
increase
Allows the borrower to use a certain amount of money for an indefinite period of time
open-end credit
A loan that requires collateral
secured loan
If your credit card is lost or stolen, ____.
you are responsible for only $50 in charges per card
Which of the following is not an advantage of using credit?
the ease of spending money you dont have
A chief advantage of using credit is the opportunity to use goods and services while paying for them
true
According to the Equal Credit Opportunity Act, a person who is denied credit has the right to a written explanation of why credit was denied
true
Credit is more costly than using cash
true
You should never sign a credit contract without knowing the exact meaning of all of the terms it contains
true