Credit Module Test
The interest or money charged a borrower for the use of credit is called - Finance charge
Finance companies take less risk and charge lower interest rates that credit unions do - False
The amount borrowed is known as the - Principle
A credit line is a pre-established amount that can be borrowed from on demand - True
The most common source for a cash loan is a - Private Lender (family or friend)
A revolving credit account is a type of open-ended credit - True
An all-purpose credit card, such s Visa, Mastercard, or Dicover is an example of what type - revolving credit
Drug stores, clothing stores, etc, are examples of retail stores that take Visa and mastercard… -True
Which of the following is not an advantage of using credit - It allows you to… (wtv the green one said)
Large retailers usually only let customers use their store charge cards an bank debit cards only - False
Property you own that is worth more that your debts is called - Capital
Banks are more willing to give loans or credit to their regular customers - True
A loan for which the borrower pledges property to ensure repayment is an - secured loan
Credit unions make loans and credit available for members and non-members - False
Credit that can be used again and again, as long as you don’t exceed the limit, is called Open ended
The annual percentage rate is the cost of credit, expressed as a yearly percentage - True
Generally speaking, the lowest interest rate for a loan would be found at a - Credit union
All credit cards have the same conditions and terms, so it doesnt matter which one you choose - False
In case of an error on a bill from a business where you used your credit card, which of the following is true - You should contact the company explaining the problem
Your credit history reveals your ability to pay debt based on past experience - True
Is it illegal to discriminate on the basis of which of the followng is granting or denying credit - marital status
Credit bureaus gather stores, ans sell credit info to other businesses - True
Under the Consumer Credit Protection Act, if you report your credit card lost or stolen, your liability is limited to - $50
The 3 main credit bureaus in America are Experian, Equifax, and Creditfax - False
Which of the following info items is off-limits to credit bureaus - Medical records
Credit bureaus use info from prvate records, such as income tax recrds and social security records - False
Paying your bills on the due date or a day or two late will earn you what type if credit rating - Good
Credit scores are created by a point system that give you score somewhere between 300 and 850 - True
The 3 main credit bureaus in Americ re Experian, Equifax, and - Transunion
An excellent credit rating means you pay your bills early and pay more the minimum amount -True
Couples who are married the wives credit score only show up and are reported under the husbands name -False
Credit files updated daily by computers and search procedures through the credit bureaus - True
Lawful uses of your credit report include applying for credit, renting an apartment, and insurance matters - True
You may see your credit report at no charge within 60 days of credit denial - False
The state of the economy has little effect on your ability to repay a debt - False booopee Lee poo poo
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