Review of Intro to Business-3

What is credit?

• Money allocated to a specific account for future use by the consumer without borrowing

• Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date

• The ability and willingness of an individual to pay back a loan as perceived by the lender

• An individual’s character, capital, capacity, collateral and conditions

Amount charged if your payment is received after the billing date

• late payment fee

• overdue fee

• withdrawal fee

• loser fee

Maximum amount you are allowed to carry as a balance on the card

• interest

• ARP

• credit line

• all of these

This is a fee that some, but not all, credit card issuers charge to use their credit card.

• APR

• annual fee

• monthly fee

• no such thing

Benefits of credit cards include:

• safe and convenient, bonuses are offered

• allows you to build a positive credit report

• needed for reservations and online shopping

• all of these

The maximum amount you may borrow on a credit card is known as:

• creditworthiness

• credit report

• credit limit

• variable rate of credit

Your credit score is not configured off of which of the following:

• Payment history

• Amount owed

• GPA

• Length of credit history

Which of the following items can be found on a credit card statement?

• payments made and new charges

• fees and interest charged

• year to date totals and how long it will take you to pay it off w/minimum only

• all of these

To build a good credit history, you should

• pay the minimum or more on your account each month

• pay on time or early

• be careful not to take on too much debt

• all of these

Credit can lead to overbuying in some instances.

• True

• False