Credit review

Collateral is:

• Required for all loans

• A form of credit

• Something of value that secures a loan to protect the lender

• Something that explains your net worth

A type of closed credit where the loan is repaid with interest in equal periodic payments. Example: car loan, mortgage

• Consumer Credit Counseling Services

• installment credit

• finance charge

• revolving credit

Victims of predatory lending practices are typically:

• Consumers who are financially literate

• Consumers who have good credit history

• The elderly and people with poor credit history

• Borrowers in wealthy communities

Julia opened her credit card bill and was surprised by the amount he owed. She cannot pay the full amount this month. What is the lowest dollar amount he is required to pay?

• Monthly fee payment

• Principal payment

• Minimum payment

• Interest payment

To improve an unfavorable credit rating, a person should

• apply for more credit

• increase the number of payroll deductions

• pay bills on time

• open a checking account

Which of the following is considered to be open-ended credit?

• A mortgage

• A car loan

• A department store charge card

• Installment loans

Dawn graduated from high school and wants to get a credit card. How can Dawn establish credit-worthiness?

• Borrowing money from friends and relatives

• Pay all bills on time

• making regular deposits

• and avoiding penalties for insufficient funds

When a person declares Chapter 7 Bankruptcy that fact will appear on the person's credit report

• for 7 years

• Until the person repays all debts

• for 10 years

• until the person is able to receive a new credit card

When a person brings an item to a pawnshop to obtain cash, the transaction is considered

• a custodial payment

• a sales agreement

• a collateralized loan

• an unsecured loan

A person has three credit card with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?

• Notify a credit reporting agency in order to avoid a late fee

• File for bankruptcy in order to maintain ones current credit score

• Notify the credit card companies in order to negotiate a new payment plan

• Contact the IRS in order to avoid paying income tax this year