Consumer Law Section 5-7 Review

Front

Fill in the blank: Credit can be beneficial when used for ____.

Back

Building credit history

Front

What should you consider when shopping for credit?

Back

Credit rates, service charges, and penalty charges; Promotions offered by creditors; Only the interest rate.

Front

Some creditors offer promotions if you use their card on specific purchases. True or False?

Back

True

Front

You should shop for credit just as you shop for products and services because:

Back

Some offer better deals than others

Front

Fill in the blank: A higher APR means ______ interest charges on outstanding balances.

Back

Higher

Front

Loan sharks lend money at high, often illegal, rates of interest. True or False?

Back

True

Front

Loan sharks promise 'easy' credit to appeal to people who have problems obtaining and keeping ______.

Back

Good credit standing

Front

Before applying for credit, it is important to do your research about a creditor and consider how this credit could impact your ______.

Back

Credit score

Front

Lenders look for a steady income that will continue into the future.

Back

True

Front

Which of the following is a reason for a low credit limit? A new credit history, A high income, A long credit history, A low debt level.

Back

A new credit history