Credit Review

Finance charge is the total dollar amount you pay to use credit.

• True
• False

Cosigning a loan means that you agree to be responsible for the loan payments if the other person fails to make them?

• True
• False

A person can get loans for all the following; plastic surgery, crops, adoption, and future income.

• True
• False

By providing businesses with a consumer's credit history, credit bureaus

• Force interest rates up
• Cause loan approvals to take more time to complete
• Reduce the risk
• Encourage consumers to borrow money.

When consumers apply for a loan they should expect to be asked for each of the following types of information except

• name of employer
• name of bank
• have you been divorced
• amount of debt

It is important to keep credit card charge receipts

• help complete income tax returns
• keep track of amount of interest
• in case of a dispute over a charge
• choose best locations to shop

An agreement that allows people to borrow against the equity in their homes, when they choose, and in the amount they choose is called

• Home equity line of credit
• Fair credit billing act
• preapproved credit card
• debit card

The total dollar amount you pay to use credit is the

• debt payment-to-income ratio
• finance charge
• annual percentage rate
• term of loan

Example of open-end credit is

• mortgage
• credit card
• auto loan
• student load

Concerning the factors that lenders use to judge credit worthiness, which one is the value of what you own, including savings, investments and property?

• Capital
• Capacity
• Character
• Citizenship