Chapter 7 Creditors Rights & Borrowers Responsibilities

1. 1. What is one way a credit card is different from a debit card?

• The money comes from your checking account

• The money comes from your savings account

• You can make purchases using it

• You can only withdraw money from an ATM

2. 2. Why do people use credit cards?

• So people do not have to carry cash

• To purchase items immediately

• For an emergency situation

• All answers are correct

3. 3. What is an advantage of using a credit card?

• Possible identity theft

• Buy now, pay later

• Having a high interest rate

• Paying only the minimum payment

4. 4. What are the three main credit bureaus?

• Equifax, Experian, Transunion

• Alpha, Beta, Delta

• Visa, Mastercard, American Express

• Equality, Affirm, Assurance

5. 5. What is the best way to establish good credit?

• Skip payments every other month

• Occasionally make late payments

• Pay the entire balance off prior to the due date

• Pay the minimum balance only

6. 6. What adds anothe layer of security to your credit card?

• Giving people you can trust access to your credit card

• Writing your PIN and placing it in your wllet or purse

• Writing "CHECK ID" in the signature space

• Dont use your credit card at all

7. 7. If the credit card company calls you to verify your personal information, it is good to verify this information with them?

• TRUE

• FALSE

8. 8. If you lose your credit card, then what should be the first step to take?

• Don't do anything since the card has your name on it

• Call the credit card company to report this

• Use your backup credit card

• Just keep checking your credit card statements

9. 9. It is a good idea to have more than 4 credit cards?

• TRUE

• FALSE

10. 10. What is one of the biggest problems young people face using credit cards?

• Getting into debt quickly

• Maxing out their credit limit

• The ability to only make minimum payments

• All answers are correct