| A | B |
|---|
| creditors typically check a borrower's credit report as evidence of a borrower's | character |
| disadvantage of using credit | payment of interest on the amount borrowed |
| most suitable for use of revolving credit | shopping for clothes in dept. store |
| advantage of using credit | use of goods and services while making payments |
| Matthew was deeply in debt and decided to declare Chapter 7 bankruptcy | He had to sell some of his personal belongings |
| purchase most suitsble for installment credit | refrigerator |
| credit applications usually request income info as evidence of a borrower's | capacity |
| example of a prime or preferred lender | obtaining a personal loan from the credit union |
| example of a sub-prime or non-preferred lender | going to a pawnbroker to get money in exchange for a pearl ring |
| Jose is 19 and trying to establish credit | he should get a secured credit card from a financial institution |
| After signing a loan agreement you learn that the lender is a non-preferred lender - you want to end the agreement - what to do? | check to see if you have the right to rescission of this agreement within 3 days |
| When approached by a credit card representative trying to recruit people to become cardholders in exchange for a free gift | avoid accepting the offer without thoroughly checking terms, including fine print |
| sign of a debt problem | being short-tempered because of concern of how to pay the bills |
| strategy for getting out of debt | making a list of sll living expenses and amounts to repay debts each month |
