Personal Finance-Chapter 18-Cost of Credit

Before making a major purchase, you should limit your shopping to one store that offers good credit terms.

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The type of credit selected affects the cost of credit.

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• False

The creditor has the responsibility to read and understand credit terms before buying.

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Garnishment is a legal process that allows part of your paycheck to be withheld for payment of a debt.

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• False

Too much unused credit may cause a potential creditor to consider you a poor risk.

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As your income increases, you should increase your outstanding credit.

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Having many credit cards give you greater flexibility when shopping.

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Phishing is a scam that uses online pop-up messages or e-mail to deceive you into disclosing personal information.

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If you carefully time your purchases, you can take up to 60 days to pay off a charged item without paying any finance charge.

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• False

Keep a list of your credit card numbers, their expiration dates, and the phone number and address of each card company in a safe place.

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