credit review

According to the Federal Truth in Lending Act, where must the terms and conditions of credit cards be posted?

• On the back of the credit card
• In the Schumer box 
• On the credit card’s Web site only
• They do not need to be posted

If a credit card is used properly, what benefits does it have for the cardholder?

• The cardholder will pay higher interest rates on other forms of credit
• The cardholder will develop a positive credit history
• The cardholder will develop a negative credit history
• There are no benefits for the cardholder

According to the Federal Truth in Lending Act, where must the terms and conditions of credit cards be posted?

• On the back of the credit card
• In the Schumer box 
• On the credit card’s Web site only
• They do not need to be posted

When reviewing a credit card statement, what is the past due amount?

• The minimum amount to be paid
• The minimum payment due not paid by the due date
• The total amount owed to a credit card
• The charges assessed to the account for use

Paying the minimum payment on a credit card every month will:

• pay a large percentage of the total balance  
• make the final amount paid substantially higher than the amount initially charged to the card
• help the cardholder create a plan for paying off a credit card in a decent amount of time
• allow the cardholder to avoid paying any interest charges

Becky no longer wants to use her Clothes-R-Us store credit card.  What should she do with the credit card?

• File the credit card away for use at a later time
• Let a family member take over the credit account so her credit score is not affected
• Keep the credit card in her wallet
• Close the account by phone and in writing and cut up the card

What is a safety tip to remember with credit cards?

• Throw away all credit card offers without opening them
• Keep a list of all cards, account numbers, and phone numbers separate from cards
• Loan your card only to those in your immediate family, since federal laws offer protection when a relative uses your card
• Open as many credit card accounts as possible

Which of the following best describes a credit report?

• A summary of a consumer’s credit accounts and payments on those accounts
• A number that describes how likely a consumer is to handle credit in a responsible manner
• A summary of a consumer’s past addresses, past employment, and funds available in savings
• A record of all credit applications as well as medical information and legal proceedings

Which of the following is NOT included in an individual’s credit report?

• Current and past addresses
• Employment history
• Bankruptcies and foreclosures
• Medical information

What information is NOT included when calculating an individual’s credit score?

• Consumer’s payment history
• Consumer’s salary
• Consumer’s outstanding debt
• Consumer’s pursuit of new credit