Personal Finance Credit Basics
Flashcard maker : Margaret Bruce
To answer the essay test question about he meaning of open-end credit, Ryan should include?
Credit extended in advance so you don’t have to apply again
Which statement should be included in description of closed end credit?
Equal payments on a regular basis so loan is repaid
Edward wants to develop a positive credit history. How should he do this?
Maintain reasonable amounts of available credit.
Which is not included in an individuals credit report?
Jakes credit application is declined because of negative history. What is true?
He applies 4 credit cardsand a car loan in 6 weeks
Evan is writing a scholarship essay about responsible money management. What is true?
When borrowing you’re spending future income
Which is not an example of a data furnisher?
A credit card company
Brice tried to borrow money from a bank. He learned his credit was low. What happens?
He gets a higher interest rate on a loan
When can you view a credit score for free?
Once a year for each CRA
David earns $5000 a month. His monthly payment is $420. Which is true?
It is a safe range for someone with his income.
Becky no longer wants her Clothes R Us store credit card. What should she do?
Close the account by phone and destroy the card
How do you build positive credit history?
Maintain a stable credit card
Use of credit recommended safe boundaries like
Keep a total of 20% not counting house payment