Final Review Credit

The grace period for a credit card refers to the time:

• 1. Taken to process a credit card application

• 1. For paying an account without an interest charge

• 1. Allowed to notify a creditor of a billing error

• 1. Used for calculating interest

 If you are making your payments on time, and you have not gone over the credit limit and you have not had any payments returned to you then the purchase A.P.R. will always remain at 20.24%.

• True

• False

Which of the following is NOT used in calculating a credit score?

• 1. Annual income

• 1. Payment history

• 1. Amount you owe

• 1. New credit

When looking over your credit report, it's important to make sure . . .

• 1. No lines of credit have been opened under your name without your knowledge

• 1. Your credit score is over 700

• 1. At least five businesses have requested your credit report

• 1. The information listed is over 10 years old

 What is the primary purpose of a credit score?

• Determining the amount of money you can borrow

• Evaluating an individual's trustworthiness to repay a loan

• Calculating monthly income

• Assessing spending habits

 What is the numerical range of most credit scores in the FICO scoring system?

• 0 to 100

• 200 to 800

• 300 to 850

• 500 to 1000

What does the term "annual percentage rate (APR)" refer to in the context of credit cards?

• The total credit limit on the card

• The interest rate charged on outstanding balances over a year

• The cashback rewards earned on purchases

• The annual fee charged by the credit card issuer