Megan’s card had a lower introductory interest rate for the first year and now the interest rate has increased, as stated on her contract.

Megan’s credit card payment has been paid in full each of the last 6 months.

The new computer Megan purchased made her account go over the credit limit for 1 week, until the credit card company processed her credit card statement.

Megan missed making her January and February credit card payments while she was participating in her college’s Study Abroad program when the friend she left in charge of sending the payments in forgot.

Jenny should acquire several credit cards to establish that she can manage them responsibly.

Jenny should obtain a secured credit card.

Jenny should apply for a different type of credit. Since she was applying for a bank loan, she should apply for a credit card.

Jenny should reapply for the same credit but include a letter of recommendation from someone who knows her well and can vouch for her character.

Steve and Teri have purchased a home in a rural area.

Zach and Leah have rented an apartment in an urban area.

Don and Denise are landlords for several rental properties.

Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home.

Health care expenses

Stock market losses

Car maintenance

Maintaining the price of your home

Driver’s license numbers

Phone numbers

Credit card numbers

Bank account numbers

Maintain reasonable amounts of available credit

Have one type of credit account

Open credit accounts in his parents’ names

Pay cash for the majority of purchases

James backed into a vehicle in the grocery store parking lot and caused $2,000 in damages to his own car and $3,000 in damages to the other vehicle.

An uninsured driver ran a stoplight, hit James’ car, and caused $2,000 in damages to James’ car and $3,000 in damage to his own vehicle.

James hit a deer while driving to work on a foggy morning, killing the deer and causing $2,000 in damage to his car.

James’ car was in the parking lot at work during a severe hailstorm where $2,000 damage was done to his vehicle.

Borrowing is an important part of a responsible financial plan.

Borrowing strongly affects the present self but has less impact on the future self.

Borrowing builds a strong credit history because it requires individuals to file a credit report.

When you are borrowing, you are spending future income.

an advance payment for costs beyond normal wear and tear.

the fee charged for performing property management tasks.

the purchase price of a housing unit.

the cost of using someone else’s property.

Paying cash for a movie ticket

Throwing mail in the garbage

Using a computer without updated spyware protection

Responding to an email from one’s depository institution

Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.

Jake pays his bills consistently and on time.

Jake has received 3 traffic tickets in the past 2 months.

Jake has applied for 4 credit cards and a car loan in the past 6 weeks.

co‐insurance.

deductible.

moral hazard.

premium.

Equal payments are required on a regular basis until the loan is repaid.

Interest rates vary depending on the repayment history.

It is a continuous loan the borrower must repay with a revolving balance.

Credit limits vary depending on the loan balance.

The interest rates on his loan will be lower, since his credit score is low.

The monthly loan payments will be lower due to his lower credit score.

The interest rates on his loan will be higher, since his credit score is low.

The purchase price of the item he needs the loan for will be higher due to his low credit score.

At any time and an unlimited number of times

When a person has sufficient financial resources

A person may not review his/her credit report

Once a year, from each of the three main credit reporting agencies

Carrying all credit cards in her wallet so they do not get lost

Signing the back of her card with her signature and “Please see picture ID”

Giving account numbers over the Internet rather than over the phone

Using credit cards for all her purchases so she only needs to pay one bill each month

$500

$600

$0, insurance will cover the entire medical bill

$700

A down payment must be made before receiving a loan.

Individuals are allowed to borrow an unlimited amount of money as long as they pay it back.

Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired.

Payments are equal and required to be paid on a regular basis.

Review shipping and return policies in advance

Always use the seller offering the lowest price

Use a debit card

Purchase a warranty

Account balances

Bankruptcies and foreclosures

Medical information

Current and past addresses