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consumer ed > loans and credit cards > Flashcards

loans and credit cards Flashcards

1
Q

a family member can not charge you interest on an informal loan with no written contract

A

false

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2
Q

credit unions are non-profit, cooperative financial institutions

A

true

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3
Q

rent-to-own is an expensive source of credit

A

true

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4
Q

a finance company could give you a loan for a used car

A

true

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5
Q

credit cards are revolving charge accounts

A

true

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6
Q

a finance company is an inexpensive source of credit

A

false

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7
Q

when you get a credit card, you sign a retail installment contract

A

false

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8
Q

payday loans are loans for small amounts of money

A

true

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9
Q

you can charge any amount on your credit card

A

false

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10
Q

commercial banks have the flexibility to meet any credit need

A

true

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11
Q

thrift institutions can not give home mortgages

A

false

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12
Q

all credit cards are alike

A

false

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13
Q

you could use a retail installment contract to buy a car

A

true

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14
Q

mortgage companies offer home loans

A

true

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15
Q

commercial banks, thrift institutions and credit unions can offer consumer loans

A

true

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16
Q

you can borrow the cash value from your term life insurance policy

A

false

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17
Q

pawnbrokers are an expensive source of credit

A

true

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18
Q

when you use your credit card, you are actually borrowing money

A

true

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19
Q

payday loan companies use your personal check as collateral

A

true

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20
Q

property insurance can be required by the lender

A

true

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21
Q

credit life insurance can be required by the lender

A

false

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22
Q

credit disability insurance can be required by he lender

A

false

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23
Q

credit life insurance is designed to pay your debt if you die

A

true

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24
Q

credit insurance premiums must be disclosed in the credit contract

A

true

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25
Q

a loan involves the borrowing of money

A

true

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26
Q

the truth-in-lending act sets interest rate on loans

A

false

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27
Q

when you sign a loan contract, you must live by it

A

true

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28
Q

the truth-in-lending act specifies the financial info that must be disclosed in a loan contract

A

true

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29
Q

a loan contract will include the finance charge

A

true

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30
Q

a home mortgage is an example of an unsecured loan

A

false

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31
Q

a loan contract will include the total of payments

A

true

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32
Q

a car loan is an example of a secured loan

A

true

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33
Q

a home equity line of credit uses a house as collateral

A

true

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34
Q

a loan contract will include the monthly payments

A

true

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35
Q

an unsecured loan always requires a co-signer

A

false

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36
Q

an adjustable rate loan is a good choice when interest rates are low

A

false

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37
Q

a loan contract will include APR

A

true

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38
Q

adjustable rate loans can adjust up, but not down

A

false

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39
Q

a loan contract will include the number of payments

A

true

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40
Q

fixed rate loans have a fixed monthly payment

A

true

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41
Q

a loan contract will include the amount financed

A

true

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42
Q

secured loans require collateral

A

true

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43
Q

adjustable rate loans can have a rate cap

A

true

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44
Q

credit cards are secured lines of credit

A

false

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45
Q

bank credit cards such as visa are the most popular credit cards

A

true

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46
Q

travel cards can only be used for hotels and airplanes

A

false

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47
Q

a department store charge card is not a credit card

A

false

48
Q

credit cards are unsecured, revolving charge accounts

A

true

49
Q

you can use a credit card to make purchases at a retail store, over the phone, on the internet or through the mail

A

true

50
Q

your credit card balance must be paid in full each month

A

false

51
Q

affinity cards may offer rebates, discounts and premiums

A

true

52
Q

a secured credit card is secured with a savings account

A

true

53
Q

the only requirement for a credit card is to be 18 years of ae

A

false

54
Q

you should always choose an affinity card over a non-affinity card

A

false

55
Q

you will have to pay a finance charge on you unpaid credit card balance

A

true

56
Q

a credit card is a privilege not a right

A

true

57
Q

a credit card application will ask for employment and income info

A

true

58
Q

if you use a credit card, you’ll have to pay annual fees and finance charges

A

false

59
Q

the magnetic strip on your credit card includes your card number

A

true

60
Q

you will receive a credit card statement monthly

A

true

61
Q

purchases, finance charges and payments are added to your new balance

A

false

62
Q

you must make a min. payment each month on your balance

A

true

63
Q

most issuers use the average daily balance method for computing credit card finance charges

A

true

64
Q

you can legally use only 1 bank credit card

A

false

65
Q

your credit score is your financial reputation

A

true

66
Q

credit unions collect info about borrowers and sell it to creditors

A

false

67
Q

a typical FICO score is 1425

A

false

68
Q

a low credit score can keep you from getting a loan

A

true

69
Q

credit bureaus decide if you should get a loan

A

false

70
Q

most financial institutions use your FICO score to decide whether or not to give you a loan

A

true

71
Q

your FICO score is calculated using to your age, credit history and sex

A

false

72
Q

credit bureaus are gov. agencies

A

false

73
Q

an excellent FICO score would be 825

A

true

74
Q

your creditors provide info about you to credit bureaus

A

true

75
Q

trans union is a credit bureau

A

true

76
Q

rent payments and medical payments always appear in your credit history

A

false

77
Q

the number of credit cards you have will affect your FICO score

A

true

78
Q

the amount of debt you have will affect your FICO score

A

true

79
Q

your FICO score is calculated by gov. agency

A

false

80
Q

FICO stands for Fair Isaac and Co

A

true

81
Q

to maintain a good credit score always make your credit payments on time

A

true

82
Q

equifax and trw are credit bureaus

A

true

83
Q

your income is reported to credit bureaus

A

false

84
Q

requires that borrowers are furnished with the rue cost of credit

A

truth-in-lending law

85
Q

stops credit discrimination based on sex

A

equal credit protection act

86
Q

allows consumers to correct errors in their credit bureau files

A

fair credit reporting act

87
Q

prohibits harassment by collection agencies

A

fair debt collection act

88
Q

stops credit discrimination based on marital status

A

equal credit protection act

89
Q

helps consumers correct credit card billing errors

A

fair credit billing act

90
Q

allows a borrower to know the true annual interest rate

A

truth-in-lending law

91
Q

the creditor is required to tell you why you have been denied credits

A

fair credit reporting act

92
Q

you can get a free copy of your credit report

A

fair credit reporting act

93
Q

you have the right to refuse payment on a disputed credit car charge

A

fair credit billing act

94
Q

you cannot be asked your marital status when applying for credit

A

equal credit protection act

95
Q

a collection agency cannot call you at work

A

fair debt collection act

96
Q

you must receive a credit card statement 14 days in advance of the due date

A

fair credit billing act

97
Q

you must be told the method being used to compute your credit card finance charges

A

truth-in-lending law

98
Q

you have the right to notify a collection agency in writing hat you do not want to hear from them again

A

fair debt collection act

99
Q

credit bureaus must remove negative info from your file after 7 years

A

fair credit reporting act

100
Q

if you can’t make your credit payments, you should just ignore them

A

false

101
Q

if you miss payments, your wages could be garnished

A

true

102
Q

once you sign a credit contract, you cannot restructure the debt

A

false

103
Q

the last person you should talk to if you can’t make your payments is the creditor

A

false

104
Q

if you are having a short-term financial problem, you may be able to pay only the interest on your debt

A

true

105
Q

consolidating your debts decreases your long term credit costs

A

false

106
Q

non-profit credit counseling can help you get out of debt

A

true

107
Q

consolidating your debts can give you a smaller monthly outlay for credit payments

A

true

108
Q

the easiest way to get out of debt is to file bankruptcy

A

false

109
Q

chapter 13 bankruptcy allows you to be released from all your debts

A

false

110
Q

chapter 7 bankruptcy allows you to protect some assets from the bankruptcy sale

A

true

111
Q

chapter 13 bankruptcy establishes a court supervised debt payment plan

A

true

112
Q

a bankruptcy can not be shown in your credit bureau file

A

false

113
Q

you may file chapter 7 bankruptcy any time it is necessary

A

false

114
Q

bankruptcy is a good way to avoid child support payments

A

false

115
Q

following a bankruptcy, you can never get credit again

A

false

116
Q

you could get a car loan at a credit union

A

true

consumer ed (2 decks)

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