Credit

Of the following reasons to use credit cards which reason is not the best?

• Credit cards let you buy things that you cannot yet afford, making payments in the future.

• Credit cards give you benefits for purchases, such as warranty extensions or cash back bonuses.

• Credit cards are convenient and, generally, safer than cash.

• Credit cards help you to build your credit, perhaps the best reason to use credit cards.

Your credit score impacts your car and life insurance rates.

• True

• False

What is a secured credit card?

• A card guaranteed against fraud.

• A card that cannot be stolen because you wear it on a keychain.

• A virtual account number that you can use to shop online.

• A card that you secure with a small deposit.

What does APR stand for?

• Approximate Pay Rate

• Annual Proximal Rate

• Annual Percentage Rate

• Acquired Percentage Rate

It is okay to stretch the truth about how much money you make when you apply for a credit card.

• True

• False

A FICO score falls between what range?

• 0 and 100

• 0 and 350

• 350 and 850

• 550 and 900

What is the best way to improve your credit score?

• Make credit card payments on time.

• Apply for more cards.

• Apply only for Visa cards.

• All of the options are true.

How much should you pay on your credit card?

• You should pay only the minimum payment.

• You are legally required to pay the balance in full before your grade period ends.

• You should pay as much as you can, striving to pay more than the minimum payment.

• You should pay interest and fees plus 10% of the principle.

__________ is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

• Credit

• Credit Score

• Interest

• Credit Card

__________ is a number assigned to a person that indicates to lenders their capacity to repay a loan.

• Credit

• Credit Score

• Interest

• FICO Score