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Finance Flashcards

Chapter 6- Personal Finance Questions

a lender can legally discriminate in granting credit based on credit history
creditors can legally require information about ___ on a credit application age
which of the following is generally not part of the process of opening a credit account? appraisal of assets
Credit bureaus compile information from ___ banks, creditors, court records
a factor in the development of credit scores is amounts owed, types of credit you isem payment history
the most well-known of the many different types of credit scores used by lenders today is the fico score
the percentage of your total credit limits that is actually owed is called your credit utilization ratio
what do credit bureaus do? they collect and provide credit information
to protect your credit card privacy, which of the following is recommended? review your credit bureau report at least once a year
A ____ on your credit report tells the credit bureau not to release your financial records to anyone without your consent security freeze
the contract for a credit card account is called the credit agreement
the contract for a loan is called the promissory note
a borrower with an excellent credit history would be most likely to receive credit with both higher credit limits and lower interest rates
under the concept of ____, lenders may offer lower interest rates to applicants with the highest credit cores while charging steeper rates to more risky applicants tiered pricing
the only real source for a free credit report is through annual credit report.com
credit bureau files are used to help evaluate applicants for credit, employment, insurance
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 8 FCRA
IF the credit bureau cannot reinvestigate an item on your credit report in ____ days, the item must be removed from your file 15
Perry had four credit cards in his bildfold when his wallet was stolen. He reported the cards missing four days after he discovered the loss, but the following the charges were incurred before he reported the stolen cards $185
a method not recommended for getting out of excessive credit card debt is to c.pay the minimum amount due on your high interest-rate cards, and pay as much as possible on the lowest interest-rate cards
If finance charges are not assessed on new credit transactions during the period between the posting date and the due date, this peripd is called the ____ period grace
The time period between billing dates on your credit cards in the billing cycle
The last day of the month on which transactions are reported on the credit statement is called the billing date
Most credit cards have a grace period only if you paid the balance in full the previous month
failure to pay the balance in full in a given month on a grace period means that you must pay interest on all new borrowings with the card since the last billing statement
if you are likely to pay your balance in full each and every month, select a credit card with a grace period and no annual fee
federal law states that bills must be mailed to cardholders at least ____ days before payments are due. 21
If no payment is received by the due date on a credit account all of these
IF you purchase an item using a credit card and late take it back for a refund you will receive a credit receipt and the amount will be charged back to the merchant by oyour card issuer
The sum of outstanding balances owed each day during the billing period by the number of days in the period is the average daily balance
if you are a person who alwasy pays off the total outstanding balance on your credit card each month, which of the following aspects of the credit card agreement will you be least interested in? APR
Justin had a beginning balance of $100 on his credit card as of MAy 1 lat month. on may 11th he charged a meal for $44. on may 21 he madde a payment of $48. What was his average daily balance for the month $113
Under the fair credit billing act, you must make billing error complaints _____ to protect your legal rights within 60 days after the first bill containing the error was mailed to you
letters from a creditor demanding immediate payment for a past due account are referred to as dunning letters
Which of the following should not be done when you find an error on your credit card statement send all original documnetation to the credit card issuer
hillary borrowed 2000 from her credit union to purchase a new computer. THis is an example of a cash loan
The contract supporting an installment loan is called an promissory notee
The legal right to seize and dispose of property to obtain payment of an unpaid claim is called an lien
A secured loan requires either collateral or cosigner
which of the following is an example of an unsecured debt? signature loan
an unsecured loan required none of these
Which of the following terms is not necessarily associated with a secured loan the rule of 78s
You might find yourself obligate to pay an entire debt in full if you miss several payments because of the ____ clause found in most installment loan contracts acceleration
Installment purchase agreements are also called collateral installment loans or chattle mortgage loans
an installment purchase agreement provides a measure of protection for the borrower
auto leasing is becoming an attractive option and about ___ precent of new cars “sold” each year are actually leased 15
In _______ lease, you must pay any difference between the projected residual value of the vehicle and its actual market value at the end of the lease period an open end
A vehicle lease is essentially a rental of a vehicle
The consumer Leasing Act limits end of lease payments to a maximum dollar amount equivalent to _____ times the monthly payment q three
With a closed end lease, there is all of these
Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the car is 14,000 and its projected residual value at the end of four years in 3,000 2,200
Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period: The value of the car is 15000 at the beginning of the lease period, and its projected residual value at the end of three years is 4000. The lease requires a 500 down payment. if the finance cost were….. 1,290
Tom has a four year clsoed end lease on his land cruiser.His contract stipulates a $.42 per mile excess mileage charge in excess of 48000 miles. If he actully drove the vehicle 60000 miles during the four years, he would be chargedan extra 5,040
Matt has a three year closed end lease on his prius V. His contract stipulates a $.31 per mile excess mileage charge in excess of 39000 miles. If he actully drove the vehicle 45000 miles during the three years, he would be charged an extra $1860
marina is coming up on the end of a closed-end lease on her 2007 Ford Edge, Her contract stipulates a .35

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