Credit Pop Quiz II

How can a credit card holder avoid paying interest on the balance owed?

• Pay your balance in full before the due date.

• Pay the minimum payment by the due date.

• Take out a cash advance to pay your bill.

• Transfer the balance to another credit card.

An example of a secured loan is a _____________.

• mortgage

• credit card

• layaway plan

• BOGO

What is the best advantage of using a credit card?

• Emergencies

• Hotel and car rentals

• Buy what you want.

• Buy now and pay the minimum.

How long does bankruptcy stay on your credit report?

• 7 years

• 10 years

• 3 years

• 5 years

Which of the following are discharged after filing chapter 7 bankruptcy.

• credit card debt

• student loans

• taxes

• child support

Which of the following agencies insure credit union deposits?

• Federal Reserve

• NCUA

• FDIC

• SEC

One of the first things you should do when establishing credit is to

• apply for a major credit card.

• open and maintain a bank account.

• apply for a loan at a credit union.

• take a out a payday loan.

Which of the following bankruptcies is a reorganization plan to repay your debts in 3-5 years?

• Chapter 7

• Chapter 13

• Chapter 12

• Chapter 15

Credit counselors

• charge upfront fees before services begin.

• can remove bad information from your credit report.

• work with your creditors to reduce your payments.

• can help you obtain a new social security card.

Interest is tax deductible on _____.

• credit cards

• auto loans

• student loans

• home loans