Family Finance Module 5 Ch. 6

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.
Bankruptcy ​All of these.
​People slip up in building and maintaining good credit when they ​pay more than 14 percent of disposable income toward non-mortgage debt payments.
The best use of credit is probably to obtain an education.
Lending designed specifically for borrowers with low credit scores is called ​subprime lending.
ending by sales finance companies are most commonly associated with ​borrowing to buy big-ticket items such as vehicles
Credit bureau files are used to help evaluate applications for All of these
​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
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
Creditors can legally require information about ____ on a credit application. age
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
What do credit bureaus do? They collect and provide credit information.
A lender can legally discriminate in granting credit based on credit history.
Data on bankruptcy can be included in your credit file for ____ years. 10
Refinancing a loan for more money than was originally owed is called a(n) ​add-on loan.
​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
​Who should set your debt limit? You
​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 is the least appropriate reason for using credit? ​To consolidate debts
The only real source for a free credit report is through ​annualcreditreport.com
Which of the following is generally not part of the process of opening a credit account? Appraisal of assets
Which of the following can be obtained using credit? All of These
The best measure of the true cost of credit is the annual percentage rate of interest.
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
​Credit bureaus compile information from
Which of the following statements is not correct regarding Chapter 7 of the Bankruptcy Act?
You are seriously overindebted if your debt payments-to-disposable income ratio is
The contract for a credit card account is called the
​The most well-known of the many different types of credit scores used by lenders today is the
_____ make both secured and unsecured small loans and require repayment on a monthly installment basis.
​To protect your credit card privacy, which of the following is recommended?
Generally, debt consolidation loans ____ monthly payments and ____ the interest rate on the debt.
Consumer credit can take the form of an installment loan that is repaid in ____ payments over a ____ period of time
​The ____ the APR, the ____ the true cost of the credit.
​Perhaps the greatest disadvantage of credit use is the
Stockbrokers loan money to clients who have ____ accounts.

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