Borrowing

What is a credit card?

• A device by which a bank extends you an instant loan, which you agree to pay.

• A plastic device with a magnetic stripe or embedded chip that consumers can use to pay for purchases directly from their checking accounts.

• My worst nightmare.

When referring to credit cards, what do the letters APR stand for?

• Accelerated Percentage Rate

• Average Percent Rate

• Annual Percentage Rate

If you pay your credit card bill in full, on time, every time, you’ll never pay a dime in interest.

• True

• False

Which of the following is NOT a factor in your credit score?

• Your payment history

• The length of time you've had credit

• The mix of the types of credit you have.

• Whether you own or rent your home

• The amounts owed

A credit score is used to measure

• Your ability to repay a loan

• How much money you’re likely to make post-graduation

• How financially savvy you are

• None of the above

Which of the following is not typically associated with borrowing?

• Credit Card

• Mortgage

• Debit Card

Who collects the information on which credit scores are most frequently based?

• Individual lenders

• Federal Government

• The three main credit bureaus: Experian, Equifax, and TransUnion

Which of the following is usually a good generic credit score?

• 400

• 500

• 600

• 700

How important is it to check the accuracy of your credit reports?

• Very important

• Somewhat important

• Not important

• You can't check your own score

It is a good idea to keep your social security card securely in your purse or wallet.

• True

• False