Financial Literacy Review

Front

What does zero liability credit card protection mean?

Back

You are not responsible for fraudulent charges to your credit card account (purchases you didn't authorize).

Front

What is the universal default clause in credit agreements?

Back

If you are late with any loan payment, all of your credit card companies may increase your interest rate.

Front

Why should you write the numerical and written amounts to the left of the assigned space on a check?

Back

So other numbers can't be added to increase the amount of the check.

Front

What is the maximum amount you can charge on a credit card called?

Back

Credit limit.

Front

What are the two most important factors for determining your credit score?

Back

Payment history and amounts owed.

Front

What is a credit score?

Back

A numerical representation of a person's creditworthiness, based on their credit history.

Front

What is the purpose of a credit report?

Back

To provide a detailed account of an individual's credit history, including loans, credit cards, and payment history.

Front

What is the difference between secured and unsecured credit?

Back

Secured credit is backed by collateral, while unsecured credit is not and is based solely on the borrower's creditworthiness.

Front

What is interest on a loan?

Back

The cost of borrowing money, usually expressed as a percentage of the loan amount.

Front

What does it mean to default on a loan?

Back

To fail to repay a loan according to the agreed terms.