ch 9 personal finance

Which of the following is the term for money that a lender makes available to a borrower with the understanding that the borrower will repay the money at a future time credit
One way to think of ______ is as the rental fee paid for temporarily using someone else’s money interest
30 days same as cash is a phrase used to describe a _______ credit arrangement noninstallment
A non installment loan would most likely be issued by which of the following furniture store.
Installment loans typically require the borrower to make _____ payments monthly
A credit card company uses a consumer’s income level, debt level, and overall credit record to calculate that consumer’s credit limit
Using _____________ you can continue to use credit to make new purchases while you are paying off money your borrowed in the past revolving open end credit
Which of the following is an advantage of using credit? you can establish good credit history
Which of the following prohibits creditors from denying credit based on an application’s gender, age, race, national origin, religion, or martial status the equal credit opportunity act
Which of the following was passed after the financial crisis of 2008-2009 in order to ensure that credit card customers are treated fairly and to limit the types and amounts of fees credit card companies can charge the Credit Card accountability, responsibility and disclosure act
The purpose of the Financial Reform act aka known as the Dodd Frank Wall St Reform and Consumer protection act prevent companies from using deceptive practices in the process of granting credit to consumers
Which of the following gives a borrower three days to change his or her mind about certain credit transactions that use a home as collateral and also limits a borrower’s risk on lost or stolen credit cards the truth in lending act
A consumer typically has two to three years to pay off any purchases made with noninstallment credit false
It is most reasonable to use noninstallment credit if you expect to soon receive enough money to repay the amount you borrowed true
Installment loans are more typically used for items that cost a few hundred dollars than for items that cost a few thousand dollars false
Part of each installment loan payment oes to reduce the principal and part foes to pa the interest on the loan true
the use of installment credit does not increase the cost of purchasing an item false
Someone with a good credit history will likely be able to borrow money at lower interest rates than someone with a poor credit history can true
Because the disadvantages of using credit so far outweigh the advantages most people should avoid credit altogether true
Using credit can simplify your finances true
Credit card interest rates are generally very low false
you cannot pay of a revolving open end credit card without incurring interest charges false
creditors must notify applicants within 30 days of application whether they will receive credit but are not required to explain why they were denied false
interest the price paid for the right to use another party’s money
installment credit used for a specific purchase but allows the consumer to repay the money over an extended period of time
prinicpal the total amount of money still owed on a loan
revolving open end credit allows the consumer to borrow up to a present max amount
noninstallmenet credit used for specific purchase and must be paid off within a short time
typically issued by business selling items that cost several hundred dollars, no interest when paid off within a short period of time noninstallment credit
can be repeatedly used as long as the credit limit is not exceeded, not specific to a particular purchase revolving open end credit
payments that include interest charges, issued by businesses selling big ticket items such as boats or furniture installment credit
Advantages of using credit make a large purchase, regular purchases make it easier and can establish good credit history
disadvantages of using credit bad credit history, high interest rate, repoed possesions
Your credit history is detailed in your credit report
Which of the following would have the least effect on your credit history the number of times you pay for purchases with cash
Which of the following is NOT one of the three main credit bureaus credit check
how many times during a 12 month period can you receive a copy of your credit report without paying a fee once
all of the following except which would be on your credit report college determining whether to admit you as a student
Credit score is created by a credit bureau
FICO credit scores are calculated on a scale of _____ to _____ 300-850
Most important in calculated your fico credit score your payment history
Fico versus Vantage score vantage score uses a scale similar to grades
Most people credit scores are within 300 to 600 range false
Moving debt around rather than paying it off will increase your credit score false
What has occurred when someone uses your personal info without ur permission for personal gain identify theft
To protect yourself from identiy theft while you are away from home on vacation it is best to have your mail held at the post office
If you find inaccurate info in your credit report you should contact the main credit reporting bureaurs and file a dispute
identify theft is illegal and nt easy to detect true
it is possible to purchase identiy theft insurance false
to protect yourself from identiy theft you should never confirm any personal info over phone or online false
it is possible to opt out of receiving pre apporved credit card offers and telephone soliciations true
poor credit decisions may cause you immediate increased costs, but they are unlikely to limit your long term financial options true
someone in a public place picking up personal info about you by overhearing your convo or viewing your info shoulder surfing
using email virsus to redirect from a d legit website to off fake one to obtain info pharming
a thief using email to pose as someone with a legit need for an individuals info phising
copying a consumers credit or debit card from his or her cards skimming
any time a thief poses as someone who a legit need for a consumers info pretexting
ways to protect yourself agaisnst idenity theft dont carry your SSN, use a shredder, d firewalls, have mail held

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