Credit Cards and Borrowing

Benefits of credit cards include: safe and convenient, bonuses are offered, allows you to build a positive credit report, needed for reservations and online shopping.

• All of these

• Only safe and convenient

• Only bonuses are offered

• Only needed for reservations and online shopping

Your credit score is not configured off of which of the following: Payment history, Amount owed, Where you live, Length of credit history?

• Payment history

• Amount owed

• Where you live

• Length of credit history

Using your credit card to get cash from a bank, ATM, or by writing a convenience check.

• cash advance

• credit limit

• interest rate

• minimum payment

To build a good credit history, you should: open as much credit as possible quickly, use the maximum credit allowed on all your credit cards, pay on time and as much of your balance as possible, all of these

• open as much credit as possible quickly

• use the maximum credit allowed on all your credit cards

• pay on time and as much of your balance as possible

• all of these

What does APR stand for?

• Annual Percentage Rate

• Annual Payment Rate

• Average Percentage Rate

• Adjusted Percentage Rate

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which best describes what this is likely to mean for Bryce?

• The interest rates on his loan will be higher, since his credit score is low.

• He will be able to borrow more money than he needs.

• His loan application will be approved without any issues.

• He will receive a lower interest rate than average.

The maximum amount you may borrow on a credit card is known as:

• creditworthiness

• credit report

• credit limit

• variable rate of credit

What would be my monthly costs if I chose to bank at Bank of Texas and use my debit card 20 times to pay for lunch?

• $5.00

• $10.00

• $15.00

• $20.00

Jake’s credit application has been declined because of his negative credit history. Which is most likely to be true?

• Jake pays his bills consistently and on time.

• Jake has applied for 4 credit cards and a car loan in the past 6 weeks.

• Jake has received 3 traffic tickets in the past 2 months.

• Jake holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.

There’s no penalty if I pay my credit card balance after the due date.

• True

• False

• It depends on the credit card company

• There is a grace period for all payments