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WorksheetsFinance Unit Three: Credit
Total questions: 24
Worksheet time: 13mins
Close-End Credit
A loan that must be repaid with finance charges on a certain date. Given for a purpose.
A loan that requires collateral on the property you take a loan out for.
Includes a house, car, jewelry.
Include car loans, student loans, and most home loans
Secured Loan
Requires collateral.
MUST be paid on a certain date.
Made on the strength of your signature alone
Allows user to use a certain amount of money for an indefinite period.
What are the three ¨C ¨ in credit.
Capacity---Capital---Consumerism
Character---Consumerism---Capital
Character---Capacity---Capital
Character---Capital---Confidence
Which of the following is not true about credit reports?
The information on a credit report will be the same regardless of the agency that provided it.
A credit report shows how your financial responsibility
FCRA requires a copy to you once every 12 months of your credit report
A credit report should be carefully reviews on a basis.
What are the three credit agencies.
Equifax, Transunion, Experian
Equifax, Credit Union, Transcredit
Experian, Equifax, Credit America
Experience, Transunion, Equia Union
Which of the following is an easy-access credit trap?
A finance charge
A payday loan
Compound interest
Store credit cards
How long does it take to get rid of bad credit.
(a)
What should a person do if he or she has trouble paying bills.
Call Bankruptcy
Call and seek advice from family members
Seek help from a Credit Counseling Service.
take out a loan for help
Whats a grace period?
The time between the billing date and the start of interest charges.
A break before you must pay your credit
The time after your credit is not paid and interest adds up.
THe time between the start of interest charge and the billing date.
Three alternatives to using credit
not to buy credit
to pay with savings
to postpone buying now, and buy later with cash
to you a debt card or other paying options
Lien
To have something that can be taken by the collateral
A legal procedure requiring a portion of the debtorś pay to be set aside by the person's employer to pay creditors.
A legal claim on a borrower's property by a creditor who is owed money.
To have claim on the property even though the creditor is own money.
Which law requires creditors to tell consumers what credit will cost them before they use it?
Truth in Lending Act
Fair Credit Billing Act
Electronic Funds Transfer Act
Fair Credit Reporting Act
Something that is owed that will decrease future earnings.
debt
Credit Fraud
lien
financial personality
Legal state in which the courts excuse a debtor from repaying some or all debt; in return, the debtor must give up certain assets and possessions.
Chapter 13
Chapter 7
repossession
bankruptcy
Chapter 13
Need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.
types of debts are wiped out with your filing's court approval,
% of rate will _______ for the finance charge
stay the same
Increase
decrease
rise
1. An installment loan is considered to be what type of credit?
Unsecured credit.
Close-End credit
Open-end-credit
secured credit
Which of the following is an easy-access credit trap?
payday loan
finance charge
compound interest
credit cards
Total amount paid by a borrower to a lender for the use of credit.
installment loan
open-end credit
Finance charge
contract
Payment for work that is calculated on an hourly basis is called a(n) _____.
bonus
unearned income
wage
salary
Gross pay minus deductions is _______.
net pay
overtime pay
gross income
bonus pay
Which of the following is the simplest form to use for filing a federal income tax return?
Form 1040EZ
Form 1040
Form W-2
Form W-4
Money that you receive from renting property is a type of _______.
unearned income
earned income
wages
salary
What type of tax is levied on purchases of goods and services?
Sales tax
income tax
goods tax
property tax
