Consumer Credit

The ability to obtain a good or service before payment is made is known as ___.

____ borrowing involves using debt to buy things that will be used up almost immediately.

Bureaus/ Banks consider the number of credit accounts, outstanding debt, collections accounts, and bill paying habits to create your score.

• True

• False

Which of the following is a disadvantage of using credit?

• Credit card fraud

• Credit card rewards

• Travel insurance

Sharon is 20 years old. She has one gas, two bank, and two department store credit cards. Her application for another credit card has been declined. The probable reason is:

• The total amount she can charge on her cards is more than her ability to repay

• she pays the complete balance each month.

• She is extremely careful about disclosing account information to unsolicited callers.

What allows you to purchase something right now that you are unable to pay for upfront?

• Installments

• Credit Score

• Credit

• Bargain

Which of the following is an advantage of credit?

• Being able to spend free money

• Emergency fund back up plan

• Paying interest to the bank

the organization that keeps track of your debt and repayment of debt...

• Credit Bureaus

• Better Business Bureau

• Bureau of financial affairs

What type of credit allows you to use it, pay part or all of it back and then use more again is called...?

• line of credit

• Personal loan

• Revolving credit

A short-term loan against your credit card so you have immediate cash.

• Personal Loan

• Cash Advance

• Title Loan