U5L1 HW Finance

What is one of the impacts of interest-bearing credit accounts on a person?

• They increase a person's savings.

• They improve credit scores automatically.

• They impact a person's ability to manage debt.

• They eliminate the need for budgeting.

Which of the following is a strategy for getting out of debt?

• Increase your spending

• Ignore your financial data

• Lower your interest rates

• Avoid creating a budget

What should you do to manage your finances better according to the strategies listed?

• Spend more than you earn

• Create an emergency fund

• Avoid financial inventories

• Pay only the minimum amount due

Which action is NOT recommended as a strategy for getting out of debt?

• Cut unnecessary spending

• Increase your income

• Make a financial inventory

• Pay less than the minimum

Which three credit bureaus should you get your credit reports from?

• TransUnion, Equifax, Experian

• FICO, Equifax, Experian

• TransUnion, FICO, Experian

• TransUnion, Equifax, FICO

What should you take note of at each credit bureau?

• Credit limit

• Credit score

• Credit history

• Credit balance

What is one benefit of qualifying for a 0% introductory offer on balance transfers?

• Increase your credit score

• Shift your high-interest credit card balance and lose the APR for 12 months or more

• Reduce your monthly payments to zero

• Eliminate all credit card debt immediately

What might you need to qualify for the best credit card offers?

• A high income

• A good credit score

• A low credit card balance

• A long credit history

How much interest would you pay if you stay with a 29.96% APR credit card balance of $5,000 and make $200 monthly payments over 40 months?

• $1,054

• $2,937

• $3,500

• $1,500

If you switch to a card with a 15.24% APR, how much interest would you pay while paying off your balance over 31 months?

• $2,937

• $1,054

• $1,500

• $2,000