Describe what you must do if you believe a statement you receive from a creditor contains an error. Describe the process for error correction, including your responsibilities and time limits and the responsibilities and time limits of your creditor.

What is the purpose of a pawnshop? What kind of merchandise can you find at a pawnshop?

How are consumer finance companies different from sales finance companies? Why do finance companies charge high interest rates?

Does your state have a usury Jaw? You can find out by consulting your state's web site, a current almanac, or other library resources. Identify the maximum finance rate that your state allows. Then identify the maximum rates allowed by neighboring states.

Give an example of a situation in which you would use collateral when making a purchase on credit. What would be the advantage to using collateral with a closed-end loan over making the purchase with your credit card?

Companies and organizations that offer credit cards compete for your credit card business by offering low introductory rates. Search the Internet for offers of a special deal. What is the "low introductory rate " ? Read the fine print. What will the rate be after the introductory period? At the regular rate, how much finance charge would you have to pay on a $1,000 balance each month? How does this compare to the introductory rate?

Using Figure 8.3 as a model, prepare a net worth statement. List your assets and liabilities. Compute your net worth. How can you use this information?

What choices do you have if your budget doesn't balance? If you had to reduce your spending to balance your budget, which would you try to reduce first: fixed or variable expenses? Why?

Credit can be very beneficial or it can lead to financial ruin. Describe the advantages of credit in terms of purchasing power. Explain how credit can become a trap and lead to overspending.

Match the terms with the definitions. Some terms may not be used.

a. capacity

b. character

c. credit bureau

d. credit freeze

e. credit history

f. credit report

g. creditworthy

h. subscribers

___ A consumer request to deny all access to his or her credit information and files

Match the terms with the definitions.

a. A-rating

b. B-rating

c. credit rating

d. credit score

e. debt collector

f. discrimination

g. point system

__ A measure of creditworthiness based on an analysis of your credit and financial history

As a consumer, you are entitled to one free credit report every 12 months from each of the three major credit bureaus. Why is it important for you to review your credit report at least once a year?

As a teenager, you would like to get started in establishing a good credit history. Based on your personal situation and the stores and banks in your area, prepare a plan that you might follow in getting started using credit.

Match the terms with the definitions. Some terms may not be used.

a. capacity

b. character

c. cosigner

d. credit bureau

e. credit history

f. credit report

g. creditworthy

h. subscribers

__ A determination that you are a good credit risk