Exam 2: Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Devon has owned a home for eight years.It was purchased for $289000 .She has a first mortgage of $156 500,a car lease with a buyout amount of $12 000,and credit card debt of $1989.How much of a home equity loan can be applied for if the house was recently appraised at $331000 ?

Your credit card had balances of $800 for 13 days,$600 for 5 days,and $650 for 12 days.Assume an annual interest rate of 18 percent,30-day billing cycle and 20-day grace period.How much is the interest charge using the average daily balance method,if the credit card gets paid off five days after the statement due date?

The term amortized refers to

If your only credit is a credit card with a $15 000 limit which you've had for ten years,and you keep your balance below $2000 and always pay at least the minimum due,you will have a good credit rating.

If not objected to by the creditors,a consumer proposal could enable someone with $50 000 in consumer debt to pay off $30 000 of it and have it removed from their credit bureau report.

A proposal to creditors is made by an insolvent debtor having difficulty meeting payments.Which of the following is true?

TransUnion is aware that you are one month late on your car payment,while Equifax has not yet uncovered this information.Which of the following statements is correct?

Which of the following will not be included on your credit report?

Which of the following is an advantage of using credit?

When you use credit to purchase a second product at half price (e.g.a "buy one get another for 50% sale"),you save money.

Using your credit card provides you free financing each month.

The most important element affecting your credit score is your debt level.

The credit scoring model used in Canada is referred to as the Fair Isaac Corporation (FICO).

Errors on credit reports can occur.If there is an error on your report

When do you need to use a credit repair service?

A credit card charges 18 percent annual interest and Frank has $750 due on the statement date.He is only able to make the minimum payment of $22.50.If the billing cycle is 30 days and the grace period is 20 days,and he pays the full balance at the next due date,how much interest would he owe?

Illustrate the cost implications of using a credit card with 21 percent interest charges versus a line of credit with five percent interest charges to fund a $10 000 purchase.In one case,assume you only have $250 per month you can allocate to paying off the debt.In the second case assume you need to get the debt paid off in five years.

Over the past 10 years you have paid your mortgage principal down from $250000 to $203000 and your house has a market value went from $330000 to $310000 .Approximately how much of a home equity line of credit could you receive if you applied now?

Discuss at least four ways in which you can protect yourself from identity theft.

Revolving credit means