Consumer Credit: Info Gathering, Installment Contracts & Credit Bureaus, Study notes of English Literature

Download Consumer Credit: Info Gathering, Installment Contracts & Credit Bureaus and more Study notes English Literature in PDF only on Docsity! RONQUILLO, RONALYN V. 2BAF4C 1. Identification 1. The data used by the creditors to guarantee good credit risk. -CONSUMER CREDIT INFORMATION 2. The ways credit information can be gathered. -THIS CAN BE GATHERED THROUGH PERSONAL INTERVIEW AND APPLICATION, REFERENCES, CREDIT BUREAUS, AND REPORTING AGENCIES AND BANKS. 3. Any type of retail charge accounts an installment plan. - RETAIL CREDIT 4. The oldest and simplest type of retail credit. -RETAIL CREDIT 5. Method of charging accounts to a sponsoring company. -THE CREDIT CARD SYSTEM 6. A kind of credit which a mix of the charge account and installment plan. -REVOLVING CREDIT PLANS 7. The primary consideration in granting credit. -LEGAL STATUS OF THE APPLICANT 8. An agreement within the contract that stipulates hastening of payments when there is a failure of the payment on a specified pp period. -ACCELERATION CLAUSE 9. Allows the buyer to pay equal installments in a specified period of time. -BALLOON CONTRACT 10. Expenses that normally installment sales considered as cost of miscellaneous expenses. -SERVICE CHARGE 11.true or false (correct minus wrong) 1. wage installment stipulates that collection can be made via the employer’s establishment. FALSE 2. Hidden clause stipulates that the buyer will act himself something which is not actually necessary TRUE In order to purchase the goods that he wants to buy. 3. pawnshops are the most accessible source of loans.FALSE 4. loan sharks engage themselves in the money lending business without license.FALSE 5. banks accept valuable loans in exchange of funds.FALSE 6. credit unions are groups of individuals who seek s who seek mutual benefits from credit.TRUE 7. cooperatives refer to the non-profit organizations which caters to the needs of individuals FALSE 8. cost of expenditures are the funds from which lending institution acquire loans.FALSE 9. government provides information on credit risks. TRUE 10. revolving credit is a spin-off of the 90-day charge account. TRUE m111. DISCUSSION 1. Explain the importance of credit information Credit is part of your financial power. It helps you to get the things you need now, like a loan for a car or a credit card, based on your promise to pay later. Working to improve your credit helps ensure you'll qualify for loans when you need them 2. Describe the sources of credit information • The sources of credit information may be gathered from a variety of sources such as personal interview and applications, references, credit bureaus and reporting credit agencies: 1. Interview and application – This is considered as a major sources of credit information because it provides the creditor to have the firsthand knowledge about the applicant. This can also give an opportunity to have an open communication wherein the creditor can follow up questions while the borrower can add more information about himself. This source of interview can be done by an application clerk in terms of large business firms while for smaller firms the credit and collection manager or the owner can c. A and B is correct d. A and B is incorrect 6. significance of factor upon which credit is based a. legal status of applicant b. employment c. A and B is correct d. A and B is incorrect 7. credit limit a. family income b. otherobligationsoftheapplicant c. A and B is correct d. A and B is incorrect 8. natureofinstallmentcredit a. downpayment b. productiveinstallment c. A and B is correct d. A and B is incorrect 9. factor of the lengths of installment a. types of goods or items b. totalamountpurchase c. A and B is correct d. A and B is incorrect 10.installment sales contract a. costofcapital b. costofinvestigation c. A and B is correct d. A and B is incorrect