Exam 6: Building and Maintaining Good Credit

Closing credit card accounts will increase your credit score.

Using the continuous-debt method of setting your debt limit,you should be able get completely out of debt (other than your mortgage) at least once every ____ years

A discharged debtor cannot use Chapter 7 of the Bankruptcy Act again for at least six years.

The APR expresses the cost of credit on a monthly basis as a percentage rate.

Negative credit information of all types can be kept on your credit bureau file for up to five years.

If you find an error or omission on your credit report,you should notify the credit bureau that you wish to exercise your right to reinvestigation under the

The percentage of your total credit limits that is actually owed is called your

The most well-known of the many different types of credit scores used by lenders today is the

The debt-to-income method of determining your debt limit compares nonmortgage debts to take-home pay.

Stockbrokers loan money to clients who have ____ accounts.

Collection agencies may telephone a debtor's employer to obtain financial information.

Credit counseling agencies can provide individuals with credit counseling as well as assistance with financial problems.

Refinancing a loan for more money than was originally owed is called a(n)

Your total liabilities excluding mortgage debt should not exceed what percentage of your net worth excluding the value of your home if you are to have a manageable level of debt?

The contract for a loan is called the

Credit use increases future buying power.

Creditors can legally require information about ____ on a credit application.

You should review your credit bureau reports at least once every three years.

The best use of credit is probably to

Credit cards allow repeated use of credit as long as you make the minimum monthly payment.