Personal Finance

The main difference between a credit card and debit card is

• A debit card requires that you have the cash available in the account; a credit card doesn't
• A credit card has the Visa or MasterCard logo; a debit card doesn’t
• A debit card does not offer the same protections as a credit card.
• A credit card requires that you have the cash available in the account, a debit card doesn't

Disadvantages of using credit cards

• Fees mat be assessed, mat not be accepted in some stores, overspending
• Convenience of not carrying cash, counting change, quick form of payment

Earning interest on interest is known as __________ interest.

• Composite
• Compound
• Augmented
• Amplified

What is a credit score?

• A credit score is a three-digit numerical rating that reflects how likely you are to fail at paying your debts
• A five-digit numerical rating that reflects how likely you are to repay your debt. 
• A three-digit numerical rating that reflects how likely you are to repay your debt. 
• A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

What financial habits determine your credit score?

• Payment History & Amount you owe 
• Length of credit history & Amount of new credit applied for recently
• Types of credit open
• All of these are correct

What actions can decrease your credit score?

• Pay your bills on time
• Only check your credit score once a year
• Max out your credit cards
• Pay off your full debt at one time

Rent is a:

• Fixed expense
• Discretionary Expense
• Variable expense
• Intermittent expense

What if I have bad credit?

• High interest rates on loans
• You can easily be approved for a loan
• You have a high credit score
• You may have to live with Mr. Trump.  

My credit history does not affect my chances for renting my first apartment.

• True
• False

Routinely paying my bills late could negatively affect my credit history.

• True
• False