Unit 8 & 9 Quiz - Unlocked

BONUS QUESTION: The below chart represents an average daily balance of $579.67. Use that to identify the interest due if the APR is 19.8 percent.

In your own words, describe how you would plan to utilize a credit card as your future self. What are the problems you should look out for? What are some of the advantages you may benefit from?

Many would say the biggest challenge in having a credit card is that you might use it and have an additional bill to pay. How would you plan for this? What good habits could you start yourself that would support a change in your normal financial routine?

Should your credit score always be the top priority in your financial life? Why or why not.

Using at least 3 vocabulary words in at least three complete sentences, discuss the most important thing(s) you will take away from our discussion of credit? You need to be able to show an understanding of what the words mean.

What should you look for in a credit card if you’re just wanting it to be for emergency use? (You may remember that my opinion is that you should ALWAYS prioritize this)

• Good reputation and security
• Accepted worldwide and customizable appearance
• Low interest rates and fees
• Large limits and reward programs

What are the three major CRAs (credit bureaus) that maintain credit reports?

• Equifax, TransUnion, Experian
• Equifax, TransAmerica, Expedia
• Expedia, the FTC, TransUnion
• Experian, the FTC, Equifax

A person only gets charged interest if he doesn’t pay his balance in full each month.

• True
• False

Which of the following is NOT a tip for responsible credit card use?

• Find a card with no annual fee
• Pay the minimum payment each month
• Avoid high balances
• Don’t use the card for cash advances

Who are credit card companies’ most profitable customers?

• Customers who pay their full balances each month
• Customers that never pay on time, if at all.
• Customers that pay the minimum payment each month.
• Customers that they have to send to a collection agency.