4F: Managing Credit and Debt Wisely

What is the first step you should take if your credit card is lost or stolen?

• Wait a few days to see if it turns up

• Report it immediately to the credit card issuer

• Cancel all your credit cards

• Ignore it and hope for the best

When comparing credit card offers, which of the following factors is most important to consider?

• The color of the card

• The annual percentage rate (APR)

• The design on the card

• The number of reward points

Which of the following is a service provided by credit counseling agencies?

• Offering investment advice

• Providing debt management plans

• Selling credit cards

• Approving loans

What is a common cost associated with using credit cards?

• Free annual fees

• Interest charges on unpaid balances

• Discounts on all purchases

• Unlimited credit limit

What should you do if you find incorrect information on your credit report?

• Ignore it, as it will correct itself

• Dispute the information with the credit bureau

• Close all your credit accounts

• Apply for a new credit card

Which of the following is NOT a service typically offered by credit counseling agencies?

• Debt management plans

• Credit report reviews

• Legal advice

• Budgeting assistance

What is the impact of making only the minimum payment on a credit card balance?

• It reduces the interest rate

• It increases the total interest paid over time

• It eliminates the debt faster

• It improves your credit score

Which of the following is a recommended debt reduction strategy?

• Paying off the smallest debts first

• Taking out a new credit card to pay off old debts

• Ignoring collection calls

• Spending more to earn more rewards

What is the purpose of a credit report?

• To show your employment history

• To track your spending habits

• To provide a record of your credit history

• To list your personal references

How can you avoid high costs when using credit cards?

• Always pay the full balance each month

• Use cash for all purchases

• Apply for multiple credit cards

• Ignore the interest rates