Financial Literacy - Credit Card

Using credit to by goods and services

• increases your future income
• does not have a date to be paid back
• forces you to spend future income
• none of the above

Experian, Equifax, and Trans union are examples of

• credit card companies
• credit reporting agencies
• lenders
• banks

A FICO score is based on which category?

• types of credit used
• all of the above
• payment history
• amounts owed

A collection agency's main purpose is to

• foreclose
• repossess
• collect debts
• make loans

The most common form of bankruptcy filing is

• Chapter 13
• Chapter 7
• A and B
• Chapter 11

If you have trouble paying your bills, you should

• ignore creditors phone calls
• all of the above
• call your creditors
• stop paying your bills

A credit card

• is available to anyone who has a savings account at a bank or credit union
• always you to borrow an unlimited amount of money
• is the same as a credit card
• allows you to spend money that is loaned by a financial institution

What is a draw back to using a credit card?

• high finance charges
• no finance charges
• cash back rewards
• no credit limits

A finance charge is

• a fee associated to debit cards
• limited by law to 15% APR
• a fee associated with credit
• impossible to avoid when using a credit card

Which statement is false regarding a credit report?

• a credit report is the same as a credit score
• a credit report shows how much you owe
• a credit report is used to calculate your credit score
• a credit report shows how good you are at making payments on time