Exam 6: Using Credit

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. In the year after the Credit Card Act of 2009 was passed, there was a(n) [ increase | decrease ] in late payments.

A credit card user's credit rating will be hampered if he or she pays only the minimum monthly payment on a credit card.

Clare's annual gross salary is $36,000, and her after-tax income is $28,800. What is Clare's maximum recommended monthly consumer credit payment?

Janey makes frequent small purchases and pays off the total outstanding balance on her credit card every month. Which of the following features is most attractive to her when searching for a credit card provider?

A proper use of open account credit would be to buy:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. A proper use of open account credit would be to buy a [ pair of shoes | laptop computer ].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. The decision whether or not to grant you credit will be made by [ individual creditors | the credit bureau ].

William uses his bank credit card frequently; however, he always pays off the total outstanding balance on the card each month. What should William look for in a credit card given the way he uses one?