How to Get and Keep Credit

To determine an applicant’s capacity to pay, creditors will verify the applicant’s employment and income.

• True

• False

According to the Truth in Lending Law, the lender must provide the borrower with the annual percentage rate

and all the finance charges of the loan.

• True

• False

Credit card companies charge different fees for different services.

• True

• False

To qualify for a low interest APR, consumers should

• earn a lot of money

• owe no money

• pay their bills on time

• have an advanced degree

All of the following are signs of credit trouble except:

• wages being garnished

• getting second- and third-payment notices

• getting calls from bill collectors

• making monthly minimum payments

In the context of this chapter, interest is:

• the amount of money charged to borrow money

• something that is intriguing

• the amount of money a company pays a borrower to use their credit card

• your curiousity

Credit cards:

• come with a cost

• always have the same interest rate

• are available to everyone

• allow credit card holders to pay less for merchandise

A credit card application will ask where the applicant lives and work.

• True

• False

A loan is money lent at interest.

• True

• False

If a person pays their bills on time, most creditors, will raise the person's credit limit.

• True

• False