You have just graduated from college and you do not have any credit history. Describe two things you could do that will help you establish credit so you can begin to build a good credit history.
Ask local companies for credit (e.g., a local bank or credit union)
Find a co-signer (a relative or friend with good credit can sign the credit application as a co-signer)
Get a secured credit card (a bank credit card backed by money you deposit in a bank
According to the Truth in Lending Act, if your credit card is lost or stolen and used without your authorization, you are only liable for __________________.
$50 in fraudulent charges.
There are many reasons why a person who applies for credit is denied. Describe two reasons why this could occur.
They have no credit history or have not used credit recently.
You have too much outstanding credit
You did not handle credit responsibly in the past
You are a victim of fraud
You have just obtained your credit history from Experian and you believe you have found an error regarding a car loan you obtained through Wells Fargo bank. Describe how you would go about disputing this error as well as what the credit reporting bureau m
You should contact Experian in writing to report the error. You should provide a detailed explanation as to why you are disputing the information. The letter should be sent by certified mail.
Credit reporting bureaus must investigate within 30 days. They
T/F: When you apply for credit (revolving or installment), the credit reporting bureaus decide whether or not to lend you money.
False
T\F: Your credit history does NOT include information about your checking and/or savings accoun
true
Who would have the best chance of obtaining a mortgage loan with a low interest rate.
high credit score with longer history
Describe one advantage and one disadvantage to using credit cards instead of cash to make purchases.
The main advantage of using a credit card instead of cash is that credit cards are a bit more safe and convenient. This is because they are accepted everywhere and you do not have to worry about losing your cash or having it stolen. Credit cards also crea
Describe the difference between installment credit and revolving credit and give one example of each.
Installment credit is typically when credit is extended to a consumer to purchase an item and the payments are split into even amounts, with the principle and interest being paid back by a specific date. An example of installment credit is borrowing money
Explain what it means to use your credit card as a cash management tool.
If a person uses their credit card to make purchases but always pays off the balance on the card each month, this using a credit card as a cash management tool. If you pay the balance off each month, then you are using someone else's money to make purchas
The various credit cards that are available to you will offer many different features. Describe three of the features that you should compare when obtaining a new credit card.
credit limit
grace period
purchase guarantees
liability limits
consumer rewards (points)
APR
cash advance and transfer balance fees
annual fee
Over the course of a year, you applied for a new credit card, took out a loan from a car dealership to buy a new car and obtained a mortgage loan from a bank. You also checked your own credit history once through Equifax and once through TransUnion. How m
three