Personal Finance -Credit

Which of the following statements comparing credit and debit cards is TRUE?

• Far more businesses accept credit cards than debit cards

• Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

• Credit card companies provide you with a monthly statement, while debit cards do not

• With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later

Select the statement below that accurately describes a characteristic of a credit card.

• You owe the same payment every month

• You must have money deposited into a checking account to use the credit card for purchases

• Making full payments on-time every month is the only way to avoid interest charges

• They do not charge interest

Which of the following could have a NEGATIVE impact on your credit score if done in a short period of time?

• Paying your bills on-time

• Paying down balances on your credit card accounts

• Decreasing your utilization of credit

• Applying for multiple credit cards

The cost (or fee) to borrowed money, usually expressed as a percentage.

• interest
• savings plan
• scarce
• purchase

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate

Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest). 

• Savings

• Profit

• Budgeting

• Credit

an estimate of the ability of a person or organization to fulfill their financial commitments, based on previous dealings.

• CREDIT RATING

• CREDIT RISK

• CREDIT CARD

• CREDIT LOAN

What is important in establishing good credit?

• Making payments on time

• Being late on payments

• Spending 100% of your credit limit

• Missing a payment

What is included under credit history on a credit report?

• Date of birth

• Late payments

Which information would NOT appear on your credit report?

• Credit Card balance

• Car loan

• Mortgage

• Debit Card balance