W!SE Test Practice (Part I)

The cost of borrowing money is referred to as

• Interest

• Annual Percentage Rate

• Credit

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

• interest

• ARP

• credit limit

• all of these

This is a fee that some, but not all, credit card issuers charge to use their credit card.

• APR

• annual fee

• monthly fee

• non-sufficient funds fee

The amount you must pay on a credit card, based on a percentage of the outstanding balance.

• minimum fee

• minimum payment

• monthly statement

• minimum monthly interest charge

Which one is considered a danger of using a credit card

• no cash needed

• leads to overspending

• convenient

• earns rewards

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

What does APR stand for?

• American Peoples Reports

• Annual Progress Report

• American Percentage Rate

• Annual Percentage Rate

What financial habits determine your credit score?

• Payment History & Amount you owe

• Length of credit history & Amount of new credit applied for recently

• Types of credit open

• All of these are correct

What are the three major Credit Reporting Agencies (CRAs)?

• Equifax

• TransUnion

• Experian

• All of these are correct

What debt cannot be removed by declaring bankruptcy?

• Child Support

• Car Loan

• Credit Card

• Medical bills