Test Review: Unit 6 Draft

Which statements are true about late credit card payments? Choose all that apply.

• They can drop your credit score by as much as 100 points

• They are an extremely rare occurrence among American credit cardholders

• They can stay on your credit report for up to 7 years

• They are the largest factor in your overall credit score

Which students are most likely to have the lowest credit scores? Choose all that apply.

• Hassan has 3 credit cards with low balances and often forgets which one they need to make payments on and is late

• Bekkah has 2 credit cards and they’re usually near their credit limit

• Kareem has 3 credit cards that they pay in full every month and recently applied for a new line of credit

• Sarah has never had a credit card and has over $10,000 in her savings account

You should check your credit report regularly to identify potential​ (a)   or ​ (b)   activity

• errors
• fraudulant
• ways to improve your credit
• due dates

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.11-12.3

CCSS.RI.9-10.3

CCSS.RI.8.5

What is the purpose of a credit report?

• To provide a free tool for you to track your finances and budget

• To compare the cost of different lines of credit

• To help lenders determine if you are a qualified candidate for credit

• To prove that you are authorized to work in the United States

A person has a credit utilization ratio of 25% and they open a new credit card without changing their spending. Their utilization ratio will go ​ (a)   because they are ​ (b)   their credit limit.

• down
• increasing
• up
• decreasing

If a potential lender checks your credit score and finds out it is above 750, you will ​ (a)   loan with a ​ (b)   interest rate.

• receive a
• low
• be denied a
• high

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.11-12.3

CCSS.RI.9-10.3

CCSS.RI.8.5

Which two parties are most interested in checking your credit score?

• A future employer

• A car dealership

• An apartment leasing office

• A college admissions office

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.11-12.3

CCSS.RI.9-10.3

CCSS.RI.8.3

Vincent had these daily balances on his credit card for his last billing period. He did not pay the card in full the previous month, so he will have to pay a finance charge. The APR is 19.2%.

nine days @ $778.12

eight days @ $1,876.00

four days @ $2,112.50

ten days @ $1,544.31

What is the interest charge?

Tags

CCSS.7.RP.A.3

The APR on Ramona’s credit card is currently 24.6%. What is the monthly periodic rate?

Tags

CCSS.7.RP.A.3

Sheila’s monthly periodic rate is 2.41%. What is her APR?