Consumer Credit Review (S, I, & FD)

Consumer credit is

• a phone network.

• credit used for personal needs.

• intended for business to business purchases.

• rarely used.

What is the common measure used to determine one's ability to repay credit card debts and loans?

• APR

• Finance Charge

• Credit Score

• Debt to Income Ratio

Credit scores can range between 300 to 850.

• True

• False

Which of the following credit score ranges would you classify as "good"? (select one) As opposed to poor, fair, very, or excellent credit.

• 600 to 650

• 750 to 850

• 675 to 725

Which of the following is a likely result of having a good credit score? (select all that apply)

• Pay lower interest rate

• More likely to receive credit from lender

• Get a promotion at work

• Often required to pay late fees

From the five C's of credit, your assets and net worth are considered

• character

• capacity

• collateral

• capital

From the five C's of credit, that fact that you are trustworthy and stable is considered

• character

• capacity

• captial

• collateral

From the five C's of credit, the fact that you earn enough to repay a loan is considered

• credit history

• collateral

• capacity

• convention

From the five C's of credit, an asset of value you can put up if the loan is not repaid is considered

• capital

• collection

• collateral

• credit history

As a general rule, the lower your credit score, the _ the interest you will have to pay when using credit.

(a)