Credit

In Month 1 of this loan it accounts for $1,041.50 of the payment. In Month 350, the debtor only need to pay 59.60 towards this amount. The cost of borrowing money is referred to as _______________.

The amount charged if your payment is received after the billing due date.

• late payment fee

• overdue fee

• withdrawal fee

• loser fee

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

• interest

• ARP

• credit limit

• all of these

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

Which one is considered a danger of using a credit card

• no cash needed

• leads to overspending

• convenient

• earns rewards

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

• Payment history

• Amount owed

• Where you live

• Length of credit history

One of the 3 C's of credit that shows one's ability to pay is

• capital

• collateral

• character

• capacity

To build a good credit history, you should

• open as much credit as possible quickly

• use the maximum credit allowed on all your credit cards

• pay on time and as much of your balance as possible

• all of these

Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.

• true
• false

One of the 3 C's of credit that refers to property that secures the loan is

• capital

• collateral

• character

• capacity