Advantages and Disadvantages of Credit

Which term represents interest and all other fees added on to credit purchases?

• annual fee

• annual percentage rate

• introductory rate

• finance charges

What fee will you pay if you go over your credit limit?

• minimum payment fee

• over-the-limit fee

• introductory rate

• grace period fee

The highest amount that can be charged to your credit account is called?

• credit limit

• free period limit

• minimum payment limit

• APR limit

What is the annual interest rate you’ll be charged if you carry a balance?

• introductory rate

• over-the-limit rate

• credit agency rate

• annual percentage rate

Introductory rates are also known as what?

• minimum payments

• teaser rates

• annual percentage rates

• annual fee rates

The least amount of money required to be paid each month is called what?

• grace period payment fee

• credit score fee

• minimum payment

• maximum payment

Which of the following is an advantage of using credit?

• interest and fees

• purchasing power

• finance charges

• overspending

What term means how trusted you are to repay borrowed money?

• open-end credit

• credit risk

• creditworthiness

• FICO

Which of these is not a part of your credit score?

• length of credit history

• payment history

• total amount that you owe

• high school grades

If you have a good credit score, you are more likely to:

• be offered a job

• be offered loans with better terms

• be offered low rates on car insurance

• all the above