Consumer Credit

What are the two ways in which goods and services can be purchased?

• Buy Now, Pay Now

• Buy Now, Pay Later

• Buy Now, Pay Never

• Buy Now, Pay Sometimes

The examples (from our notes) of purchasing something on credit are:

• Electricity, credit cards, vehicle or house loans

• gum, jawbreaker, soda

• milk, eggs, bread

• dogs, cats, rabbits

Credit Card Fun Fact: There are more than 1.5 billion credit cards in the United States.

• False

• Maybe

• Possibly

• True

Credit Card Fun Fact: The typical American household receives about 15 credit card offers per month.

• False

• Maybe

• Possibly

• True

Credit Card Fun Fact: There are more than 500,000 credit card transactions around the world every second.

• False

• Maybe

• Possibly

• True

Which of the following is an advantage of using credit?

• Shop without carrying large amounts of cash

• Tendency to overspend

• Credit is based on honesty

• High interest rates

Which of the following is an advantage of using credit?

• Credit is based on honesty

• Tendency to overspend

• Don't have to wait until you can pay in full to purchase something

• High interest rates

What is a disadvantage of using credit?

• Shop without carrying large sums of money

• High interest rates

• Don't have to wait until you can pay in full to purchase something

• Can get use out of something while still paying for it

What is a disadvantage of using credit?

• Shop without carrying large sums of money

• Can get use out of something while still paying for it

• Don't have to wait until you can pay in full to purchase something

• Tendency to overspend

What is a disadvantage of using credit?

• Shop without carrying large sums of money

• Can get use out of something while still paying for it

• All transactions are a legal contract obligating you to make timely payments

• Allows you to get use out of something while still paying for it