Name _________________________________________________

Chapter 7: 30 Question Worksheet (3 pages) Use www.practicalmoneyskills.com or a good search engine

additional links:

In the spaces provided, answer each of the following questions about credit.

List five things you can do to build a credit history.

When a prospective creditor evaluates a credit application, they look for the three C's: Character, Capital, and Capacity. For each of the following statements, write the letter that corresponds to each statement's specific characteristic.

a) Character
b) Capital
c) Capacity

 6. _____Do you have a savings account?

 7. _____Have you used credit before?

 8. _____How long have you lived at your present address?

 9. _____Do you have a steady job?

10. _____Do you pay your bills on time?

11. _____What are your current debts and your current living expenses?

List the four major categories of information that appear on a credit report.

12.

13.

14.

15.

In the space provided, write the letter of the type of credit each statement represents.

a) Single payment credit
b) Installment credit
c) Revolving credit

16. _____Monthly payment on a car loan

17. _____Monthly telephone bill

18. _____Monthly heating bill

19. _____Using a credit card to buy a new jacket from a department store and then paying the charge off over several months

20. _____Using a major credit card to buy a pair of shoes and then paying the total amount of the credit card balance within a month

For each of the following statements, write a T in the space provided if the statement is true, and F in the space provided if the statement is false.

21. _____It is legal for a creditor to deny an applicant credit based on marital status or age.

22. _____If you are denied credit, the creditor is not legally obligated to explain why.

23. _____When creditors evaluate your income, they can't legally refuse to consider income from public assistance in the same manner as other income.

24. _____If you are refused credit because of a credit report, upon request from you, the lender must give you the name and address of the credit bureau that issued the report.

25. _____Your credit report is available to anyone, regardless of the reason.

26. _____A debt collector has the right to contact you at any time of day or night.

27. _____To be within a safe debt load, your total credit should not exceed 50% of your net pay after subtracting rent.

28. What should you do if you find there is inaccurate information on your credit report?

29. Generally, how long can a consumer reporting agency report unfavorable information?

30. How long can bankruptcy information be reported by a consumer reporting agency?

31.  Go to a search engine and locate 3 of the millions of credit card companies.  Record the hyperlink to the company so I may verify your answers, or show me on your computer screen.

32. Compare and research specific commercial credit cards. Hypothetically choose a card for yourself.  Explain and justify your selection.