CREDIT REVIEW FOR TEST

Which of the following is your credit score based on?

• payment history

• amount owed

• new credit opened

• all of these

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when:

• selecting a bank

• choosing a financial advisor

• selecting a credit card

• selecting a credit union

If you only pay the minimum payment each month on your credit card, what will happen?

• you won't incur any interest

• it will not take as long to pay off the debt

• it won't change anything

• you will pay more in interest

If you build a good credit history, it will lead to lower rates on revolving credit.

• true

• false

Under the Truth in Lending Law,

• all organizations must state the true APR that they charge their customers

• Under this law, all organizations must state the true credit limit that they charge their customers

• Under this law, all organizations must state the true financial insititutions that they use for their customers

• none of these are covered under this law

Which of the following is true concerning a credit card?

• money is charged to a line of credit for which you are billed later

• the convenience of "buy now, pay later" is used

• proper use of the credit card can build your credit history, enabling you to get loans at a good interest rate

• all of these are true of credit cards

If you spread out your loan repayment over time, it will usually mean a _____________ interest rate.

• lower

• higher

• annual

• none of these

Comparing which of the following is the best way to select a credit card?

• annual fees

• foreign transaction fees

• balance transfer fees

• APRs

A measure of your financial ability to repay a loan:

• character

• capacity

• capital

• collateral

Under Federal Law, a creditor can send your account to a collection agency once it is ____ days past due:

• 21

• 31

• 41

• 60