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 business that gathers, stores, and sells credit information to other businesses

Are credit guard companies a good deal for consumers? Why or why not? Why would a person choose to freeze his or her credit?

Your neighbor recently purchased a refrigerator on credit but was unable to continue making payments because he lost his job. In the last week, he has received abusive telephone calls at home from a debt collector. Your neighbor has volunteered to return the refrigerator, but the debt collector refuses and threatens him with public humiliation. The collector has now come to your house looking for him and has made false and degrading comments about the neighbor's character. Are the debt collector's actions legal? Why or why not? What advice would you give?

How can parents help their child get started with credit? Why would a teenager ask for help from his or her parents?

Obtain a written error policy supplied by a credit card company or other creditor .

How do consumers benefit from the creation of the Consumer Financial Protection Bureau?

Obtain a credit application from a local merchant or national credit card company. On a separate piece of paper, create two columns. List each question on the form in the left column. In the right column, indicate whether each question is (a) a personal question, (b) a payment record question, (c) an employment stability question, or (d) an income question.

Do you think it is fair that young consumers must now either have a job or have a cosigner to get credit? Explain your answer.

How can external conditions affect your ability to repay debt? Why should you be held accountable for things you can't control?

How is an excellent credit rating different from a fair credit rating? Why is having an excellent credit rating so important?

Your friend Kamal has just been turned down for credit. He works part time and would like to obtain a credit card from a local department store. The department store stated lack of credit history as the reason for credit denial. What can Kamal do to create a credit 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.

Evaluate your creditworthiness based on the five Cs of credit: character, capacity, capital, conditions, and collateral. What do you conclude?