Intro to Consumer Credit Test

Which items can you purchase with credit rather than cash? 

• Car

• Computer

• House

• Gas

• Food

Which of the following are lending institutions that offer credit

• Banks

• Consumer Finance Companies

• Credit Unions

• Personal Loan Shops

• Earl's Groovy Alley Service

provides loans for short periods at a high interest rate

• consumer finance company

• credit union

• personal loan shop

• bank

A __________doesn’t charge interest if the balance of the account is paid off within a specified amount of time.

• Introductory Interest Free

• Charge Cards

• Rent to Own

• Deferred Payment Plan

Report that shows how well you can meet financial obligations.

• Earning Power

• Credit Rating

• collateral

• asset

__________ is an evaluation of a consumer’s creditworthiness.

Lenders often compete for customers by offering credit at a low interest rate for an ________________.

• introductory period

• interest-free period

• credit offer

• old person

Fico score range: ______to 850.

• 300

• 400

• 500

• 100

Be aware of due dates and pay all your bills on time. Bills that aren’t linked to a line of credit could still end up on your credit report if you fall behind.

• Pay Bills on Time

• Know What Goes into a Good Credit Score

• Don’t Close Old Credit Cards

• Review Your Credit Report

Amy is planning to purchase a laptop computer priced at $599 (including taxes). If she can save $60 per month, how long will she have to wait before she has saved enough money to pay for her purchase in cash?

• 24 months

• 10 months

• 60 months

• 6 months