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Econ and Personal Finance: Credit
Terms in this set (31)
true or false: credit can help you buy the things you want earlier than you could get them by saving
true or false: all credit is bad
true or false: part of the process of a lender deciding whether or not to provide credit to a potential borrower is assessing their ability to repay the debt
true or false: consumers should take every credit card that is offered to them so they will have a variety of choices
true or false: you can help maintain a good credit history by paying your bills on time
what agency collects and maintains information about people's experience with credit?
Credit Reporting Agency
what type of loan is backed by something of value (collateral) pledged to ensure payment?
asking another person, usually a parent, to agree to pay a debt for you if you become unable to pay is asking them to do what?
what is the maximum amount you are allowed to charge on your account called?
what type of loans are loans that are granted based on the borrower's credit rating alone and are NOT backed by something of value?
name 3 advantages of using credit
cash for emergencies, convenience, use of goods and services as you pay for them
name 2 types of closed-end credit
mortgage and car loan
name 2 ways you can hurt your credit
pay bills late and claim bankruptcy
name the 3 credit reporting agencies
Equifax, Transunion, Experian
name 3 alternatives to credit
do without goods, wait and save, use savings
what are 3 factors in determining credit worthiness?
character, capital, collateral
what makes up the largest percentage of calculating your credit score?
what is the highest credit score you can have?
the amount of time a cardholder has to pay the credit card balance without paying interest is called the ____
what is the term for the maximum amount of money a cardholder can charge
which act regulates consumer reporting agencies and the use of consumer credit information?
Fair Credit Reporting Act (Equal Credit Opportunity Act)
which act protects consumers against inaccurate and unfair credit billing practices and a mechanism for addressing billing errors?
Fair Credit Billing Act
in which act are creditors not allowed to contact debtors at inconvenient times (before 8 a.m. or after 9 p.m.) or places?
Fair Debt Collection Practices Act
the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act ensures adequate safeguards for young people such as requiring applicants under the age of ____ to obtain a cosigner for the credit card
chapter ____ bankruptcy is considered "liquidation" by selling a debtor's nonexempt property and distributing the proceeds to creditors
chapter ____ bankruptcy provides for adjustment of debts and allows a debtor to keep property and pay debts over time
what is identity theft?
when someone uses your personal information to commit financial fraud
____ is a financial crime that starts with massive numbers of deceptive spam emails
____ is a financial crime in which dishonest employees make illegal copies of credit or debit cards using a device that captures the cards numbers
when a borrower fails to pay the debt owed they are said to be in ____
property that a borrower promises to give up in case of default is ____
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