Unit 5 Credit Review

Front

Credit is the most commonly used method of purchase in the US.

Back

True

Front

Payments on a credit account include both principal and interest.

Back

True

Front

If you do not use your credit card within a 12-month period, you do not have to pay the annual fee.

Back

False

Front

Any negative information that could harm your ability to get credit remains in your credit report for 10 years.

Back

False

Front

The Account Detail section of a credit report shows the monthly balances for all of a consumer's credit accounts as well as credit limits on each account. True or False?

Back

True

Front

Both creditors and debtors have responsibilities to each other.

Back

True

Front

Secured loans typically have higher interest rates than unsecured loans.

Back

False

Front

Creditors are not required to disclose the amount of finance charges you will pay on your credit card debt.

Back

False

Front

With a debt management plan, a consumer makes a single monthly payment to a credit counseling organization that distributes funds to creditors.

Back

True

Front

Chapter 13 bankruptcy is often referred to as straight bankruptcy.

Back

False