Credit study guide part 2

What do yo do with a credit card you no longer want to use?

• close the account and destroy the card

• put it away to use at a later time

• keep it in your wallet

When can you view your credit report for free?

• anytime, unlimited times

• Once a year from each of the 3 major reporting agencies

• a person should not review his/ her credit report

If you credit score is low, it means

• your interest will be higher

• your monthly payments will be lower

• the interest will be lower

How can you start your credit history if your credit gets declined?

• get many credit cards

• get a secured credit card

• re apply and include a letter of recommendation

To develop a positive credit history

• maintain a reasonable amount of credit

• have one type of credit

• pay cash

To minimize identity theft

• check your credit every four months

• report mistakes to only one credit reporting agency

• wait 60 days before disputing any information

To keep credit in safe boundaries, total amount borrowed should be

• 20% of net income, not including mortgage

• 20% of net income, including mortgage

How can you legally avoid paying interest on a credit card?

• pay the minimum balance

• pay the balance in full every month

• limit the use of the card

A score of 760 is considered

• very good

• fair

• excellent

Identity theft is

• permission to use your parents' credit card

• using someone else's identification

• having the same name as other person