Question

13. Personal Bankruptcy Procedures. W CENGAGE MINDTAP Enrollmer a sea Ch 06: Assignment - Using Credit Term Answer Credit scoring Description A. Debit card B. Under this piece of federal legislation, credit card statements must be sent our 21 days before the due date. This professional financial advisor, in return for a fee, represent overextended consumers in negotiations with creditors. The advisor's objectives are often to reduce the size of consumers' payments, the size of their debt, or both Purchases made with this plastic card cause funds to be immediately transferred from the account holder's bank account to the seller-as if the account holder was paying with cash. This is one means by which to obtain a cash advance from the bank that offers a credit card. FICO score Reward card D. Convenience check E. Home equity credit line F. Credit counselor This is the process of evaluating the credit worthiness of a credit applicant via the assessment of an applicant's credit report and the calculation of a credit score. This type of credit card carries a higher interest rate than regular bank cards, and offers incentives, such as rebates-including airline tickets, cash, or credits that can be used to purchase the sponsor's merchandise. This form of open credit is the only type of consumer credit that allows a borrowing, home-owning taxpayer to deduct the loan's interest charges from his or her taxable income. This type of plastic card is secured with some form of collateral, such as a certificate of deposit. This is the most widely used value in the United States to help banks and other institutions make lending decisions. Applicants with relatively high values might be offered lower interest rates on mortgages or other loans, or a higher credit limit This is the name given to interest rates offered by banks to new credit cardholders, which are only effective for the first 6 to 12 months of the cardholder's account. Secured card H. Teaser rate I. This is Credit Card Act of 2009 ).

Answer 1

Solution

Credit Scoring	Answer: (I)	Credit scoring is a method of computing score of creditworthiness of an applicant, ranging from 300 to 850. Banks in United States make lending decisions on the basis of this score. On various cases it is seen that interest rate charged has been determined on the basis of this score, for example, lower interest rate from customers having higher score.
Debit Card	Answer: (C)	Debit Card facilitates hassle-free and immediate payment to vendor as if the buyer is paying in cash.
FICO Score	Answer: (E)	It is a kind of calculation credit score of an applicant on the basis of his or her credit report enabling the creditor to gain an insight over the applicant’s creditworthiness.
Reward Card	Answer: (F)	Reward Cards are such type of credit cards, subjected to monthly payment of interest similar to credit cards, but unlike these, Reward Cards offer some incentives over various transactions made by the card holder.
Convenience Check	Answer: (D)	Convenience checks are blank checks that that credit cards companies send to their customers. The cardholders can use these checks to pay off balances on other cards, make new purchases or to secure a cash advance.
Home Equity Credit Line	Answer: (G)	Home Equity Credit Line or the HELOC is a kind of open credit allowed to customers under security of the equity in the home of the customer. Under various features of HELOC, taxpayers can claim deduction of the loan interest paid from their taxable income.
Credit Counselor	Answer: (B)	Credit Counselors are a class of professionals represent overextended consumers in negotiation with creditors in exchange of an agreed charge, or fees.
Secured Card	Answer: (H)	Secured Cards are a class of Credit Cards typically secured by some collateral securities, for example, Deposit Certificates or similar liquid instruments.
Teaser Rate	Answer: (J)	A Teaser Rate is an adjustable introductory rate of interest for credit cards, as lower as 0%,for a temporary period ranging from 06 to 12 months, just to attract the potential customers.
Credit Card Act of 2009	Answer: (A)	Under Section 163(a) of the Credit CARD Act of 2009, “A creditor may not treat a payment on an open end consumer credit plan as late for any purpose, unless the creditor has adopted reasonable procedures designed to ensure that each periodic statement including the information required by section 127(b) is mailed or delivered to the consumer not later than 21 days before the payment due date.”