Understanding Credit and Finance Terms

Front

What is a credit score?

Back

A numerical expression representing the creditworthiness of an individual.

Front

Ava is trying to improve her credit score. Which of the following is typically considered when calculating a FICO score? The number of credit cards you own, Your payment history, Your annual salary, The number of dependents you have

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Your payment history

Front

Aiden has a credit card with an annual fee of 50 dollars and a late fee of 25. How much would Aiden pay in fees if he is late on 3 payments in a year?

Back

$125

Front

How can a balance transfer be beneficial for managing high-interest credit card debt?

Back

It lets you transfer your debt to a card with a lower interest rate, potentially saving on interest payments.

Front

Abigail has a credit card with a credit limit of 5,000 and an account balance of 1,200. What is the available credit?

Back

$3,800

Front

Discuss the potential impact of identity theft on James's credit score and financial health.

Back

It can severely damage your credit score and lead to financial losses.

Front

What is the purpose of a grace period in credit card terms?

Back

To provide a period during which no interest is charged on new purchases if the balance is paid in full.

Front

How does a cash advance differ from a regular credit card purchase?

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Cash advances typically have higher interest rates and fees compared to regular purchases.

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Jovanni is considering adding his friend Sarah as an authorized user to his credit card account. Evaluate the advantages and disadvantages of this decision.

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It allows the authorized user to build credit, but you are responsible for their charges.

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After experiencing identity theft, NBA Superstar Luis R. decided to take a specific action to protect his credit. What did he do? Options: A temporary increase in her credit limit, A measure to prevent new credit accounts from being opened in her name, often used after identity theft, A reduction in her interest rate, A method to close her credit card account permanently

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A measure to prevent new credit accounts from being opened in her name, often used after identity theft