4.3/4.4 FA HW Loans and credit cards

What does APR stand for?

• Annual Point Ratio 
• Annual Percentage Rate
• A Percent Rate
• Annually Percentage Ratio

A high FICO score means you have better credit than someone with a low FICO score. 

• False
• True 

How can a cardholder avoid paying interest on a credit card?

• Do not pay anything

• Pay the minimum payment after its due date

• Pay the balance in full every month

• Pay the minimum balance every month

Grace Period - The time allowed to pay your balance without being charged a finance charge. Usually 25 to 30 days. 

• False
• True

You are able to obtain your free annual credit report every ____ months.

• 18
• 6
• 12
• 24

The cost of borrowing money is referred to as

• Credit Line

• Credit

• Annual Percentage Rate

• Interest

This card is tied to your checking account.

• Credit Card

• Debit Card

• Social Security

• Drivers License

What type of fee is given to a cardholder if they do not make the minimum monthly payment by the due date?

• Overtime fee

• Late- payment fee

• Misdemeanor

• Identify Theft fee

What does defaulting mean?

• Getting a good credit score

• Building credit history

• Failing to pay your debts

• Opening many credit card accounts at the same time

To use credit responsibly, you should do what?

• Understand the account’s interest rate

• Open several different credit accounts

• Pay attention to the APR and not the APY

• Pay only the minimum payment each month