Credit Card Review
• Some credit card companies charge
________ fees for the use of their
card.
• ANNUAL
• Credit card interest rates are
contained in the _________
• APR
• If you lose your credit card, you
should immediately call your credit
card ______________
• COMPANY
• The maximum amount a credit card
holder is allowed to charge is called
your ___________ ___________
• CREDIT LIMIT
• Bouncing a check will negatively
impact your ________
____________
• CREDIT SCORE
• An advantage of debit cards is that
the holder is not contributing to
additional _________ like credit
cards.
• DEBT
• The most a credit card holder can be
liable for lost or stolen cards is
_____________ dollars if reported
promptly.
• $50
• Credit card interest rates are
_________ than bank loan interest
rates.
• Higher / Lower
• HIGHER
• A danger of credit cards is
____________ buying because you
don't need to have the cash available.
• IMPULSE
• Credit card holders have _______
days to report billing errors.
• 60
• In the 1900's,
_________________ at general
stores were a form of credit.
• ACCOUNTS
• The total amount that remains due on
a credit card loan, including both
principal and interest, is known as
__________ _________.
• BALANCE DUE
• The use of too much credit in the
1990's led to ____________.
• BANKRUPTCY
• Which of the five C's is the most
important to potential lenders.
• CAPACITY
• _____________ is property you
possess that is worth more than your
debts.
• CAPITAL
• A(n) ________ _________is
money borrowed against the credit
card limit, and it is one of the most
expensive ways to use a credit card.
• CASH ADVANCE
• A loan for a specific amount that
must be repaid in full, including
finance charges, by a stated due
date, is called a ________
________ loan.
• CLOSED END
• Note: cannot add purchases once it
is set up – only for amount approved.
• Something of value that can be sold
to pay a debt is often referred to as
_____.
• COLLATERAL
• Paying at a future date for the
present use of goods and services or
money is called _____.
• CREDIT
• Also trust extended to borrower
with the understanding that the debt
will be paid back at a later date.
• Borrower must also have a job or
income when applying for credit.
• One who lends money or the use of
goods and services for payment at a
later date is known as a(n) _____.
• CREDITOR
• A service to customers called
____________ ___________
allows you to charge now and not be
billed for several months.
• DEFERRED BILLING
• Since 1900, rates of interest on
consumer loans have
_________________.
• DROPPED
• Small loan companies, also called
_________ companies, charge
higher interest rates risk.
• FINANCE
• The interest you pay for the use of
credit is called a ________
_____________.
• FINANCE CHARGE
• After a purchase has been made on
credit, the borrower has a period of
time before payment must be made.
This time period is called the
__________ period.
• GRACE
• A loan that is paid in equal monthly
installments with a fixed interest
rate is an _____________ loan.
• INSTALLMENT
• Low APR that goes up after given
period is called the
_______________ rate.
• INTRODUCTORY
• A(n) _______ ____ ________ is a
pre-established amount that can be
borrowed on demand.
• LINE OF CREDIT
• __________ ____________ are
unlicensed lenders who charge illegal
rates.
• LOAN SHARKS
• Banks generally charge the
_______________ rates allowed by
law for credit card balances.
• MAXIMUM
• Credit unions make loans available to
their ______________ only.
• MEMBERS
• __________ ________ credit is
credit whereby you can add
purchases up to a set credit limit.
• OPEN ENDED
• A(n) _____ is a legal business where
loans are made based on the value of
merchandise used as collateral.
• PAWNBROKER
• The amount borrowed is known as the
____.
• PRINCIPAL
• The most common source of cash
loans is the __________ lender.
• PRIVATE
• Businesses called _____ stores offer
goods and services directly to
consumers and include department
stores, drugstores, and clothing
stores.
• RETAIL
• A __________________ credit
account is a type of closed-end
credit.
• REVOLVING
• Finance companies charge higher
rates of interest on loans because
they take more ________.
• RISK
• A manufacturer-related company,
called a(n) _________
____________ company, makes
loans through authorized
representatives.
• SALES FINANCE
• A loan on which the goods purchased
with the loan serve as collateral is
called a _____ loan.
• SECURED
• Credit debt should not exceed
_______ percent of your monthly
income.
• 10%
• 20/10 RULE – no more than 20% of
annual income; no more than 10%
of monthly income
• The process of moving an unpaid
credit card debt from one issuer to
another is a balance
_____________.
• TRANSFER
• The ________-in-Lending law
requires all lenders to calculate APR
the same way.
• TRUTH
• In some states, maximum interest
rates are set by _____ laws.
• USURY
• If no usury laws are set, the lender
can charge whatever interest rate
they want.
• The annual percentage rate (APR) is
the cost of credit, expressed as a
____________ percentage.
• YEARLY
• You have a right to know what is in
your credit file and who has accessed
your file for credit purposes in the
last _______ months.
• SIX
• Credit _______________ gather,
store, and sell credit information to
business subscribers.
• BUREAUS
• Credit _____________ will not
negatively impact your credit score,
but may actually help you develop a
financial payment plan to get back on
track.
• COUNSELING
• Credit _______ are updated daily by
computers and search procedures.
• FILES
• _____________ is favor based on
some factor other than individual
merit.
• DISCRIMINATION
• Debt collectors charge creditors
________ percent of the disputed
amount.
• 50 (fifty)
• To maintain good credit you must not
only make payments on time, but you
must pay ______ your debt.
• DOWN
• It is important to check your credit
report to check for _________
• ERRORS
• An __________________ credit
rating means you pay your bills early
and pay more than the minimum.
• EXCELLENT
• The _________ _________ Billing
Act requires creditors to resolve
billing errors within a specified
period of time
• FAIR CREDIT
• The rating assigned to consumers by
the credit bureaus is called a
_______ score.
• FICO
• A summary of a person's credit
history, kept at a credit bureau is a
credit __________.
• FILE
• The complete record of your credit
performance is called your credit
___________.
• HISTORY
• The three types of debt are singlepayment, ____________, and
revolving.
• INSTALLMENT
• Your credit score is a number
between 300 and 850. Lenders
typically give their ____________
interest rates to people with credit
scores that are at least a 620 rating.
• LOWEST
• _________________ records
cannot be obtained through public
records.
• MEDICAL
• If you charged an item that is
broken, first try to settle with the
_____________.
• MERCHANT
• Debt collectors are usually allowed to
call you at home after _________
p.m.
• NINE
• Financial difficulties are commonly
caused by ________________
• OVERSPENDING
• A measure of your credit worthiness
is your credit __________.
• RATING
• If you need to reduce the number of
credit cards you hold, close the most
________ ones first.
• RECENT
• A good way to get started with
credit is to open a
_______________ account.
• SAVINGS
• Holding a mortgage on your house is a
form of ___________ debt.
• SECURED ( something of value
backing the loan)
• You have a right to know what is in
your credit file and who has seen
your file for credit purposes in the
last _________ months.
• SIX
• A complaint about an error on a
billing statement must be in writing
and mailed within __________ days
after you receive the statement.
• SIXTY
• Negative events or delinquencies can
remain on your credit report for
seven to ________ years.
• TEN
• A credit report that includes scores
from the three major credit bureaus
is called a __________credit
report.
• TRIMERGE
• After a denial of credit, the creditor
must keep for ______ months all
information used to determine the
denial and any written complaint from
you regarding the denial.
• TWENTY-FIVE
• Credit scores among the three major
credit bureaus do ______.
• VARY
• If you have a question about a
possible billing error, you should
never __________ directly on the
bill.
• WRITE
• Too many _______ on your credit
history will bring your credit score
down.
• INQUIRIES
• An act giving you access to your
credit file.
• Fair Credit Reporting Act
• An act giving rules for handling billing
errors.
• Fair Credit Billing Act
• REMEMBER = No one can fix your
credit except Y O U !
• Most credit repair offers are scams