7.2 Credit: Types and Sources

Open-end credit can be used again and again as long as...

• you exceed a balance over the limit

• the balanced owed does NOT exceed over the limit

• you repay the entire balance within 10-25 days

Which account gives the consumer the option to pa the balance in full by the due date or in payments as high as the minimum?

• Savings Account

• Checking Account

• Revolving Account

• Money Market Account

What is a form of borrowing and involves interest charges?

• Credit Cards

• Charge Card Agreement

• Gift Card

• Gasoline Company Card

What is Annual Percentage Rate (APR)?

• time frame within which you pay your current balance in full

• a fee within range of $40 up to $100

• a 25-day billing period

• the cost of credit expenses as a yearly percentage

A legal business that makes high-interest loans based on personal possessions.

• Pawn Broker/Pawnshop

• Finance Companies

• Loan Shark

What is a loan shark?

• a legal business

• a finance company

• a retail store

• an unlicensed lender who charges illegally high interest rates

What are other sources of credit?

• Life insurance policies

• Borrowing against a deposit

• Borrowing against an asset

• Lines of credit

• All of the Above

If you have a CD or a retirement account you might be able to borrow money against it?

• True

• False

You CAN'T borrow against any personal item like jewelry, collectibles, maybe even your car?

• True

• False

What are the top, or major, 3 credit bureaus?

• FICO, Equifax, Innovis

• Experian, CreditInfo, TransUnion

• Equifax, Experian, TransUnion

• PRBC, Innovis, Equifax