WorksheetsChapter 4 Consumer credit
Total questions: 14
Worksheet time: 6mins
Which of the following is the definition of available credit?
The difference between the maximum amount you can owe and the actual amount you owe on a credit card.
The maximum amount that a credit card holder can owe on a credit card at one time.
The cost of using a credit card for the current billing period.
A purchase, cash advance, balance transfer, or payment made using a credit card.
A credit card is non-revolving credit which allows the consumer to make purchases on credit.
True
False
A person who has a good personal credit record is generally charged a lower interest rate when he applies for a loan.
True
False
Which of the following is non-revolving credit?
Car loans
Credit cards
Overdraft facilities on current account
None of the above
Which of the following are instalment loans?
Tax loans
Mortgage lans
Car loans
All of the above
The following statements about a personal credit record is true, EXCEPT?
A person with a good credit rating can borrow money at a lower interest rate.
Financial institutions are not willing to make loans to people who have a bad personal credit record.
A personal credit record will not be affected by the number of credit cards that a person is holding.
A bad personal credit record affects a person’s personal resume.
Which of the following is not an advantage of using a credit card?
Convenience
Improve the credit rating
Payment flexibility
Worldwide acceptance
What is the most important rule of using credit cards?
Don't use them, they are evil
Always pay them in full and on-time
Don't pay more than the minimum payment
Find a card with a good rewards program
