Personal Finance Courses: Credit

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Choose wisely. There is only one correct answer to each question.

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1.
Credit cards may charge fees for which of the following?
Choose wisely. There is only one correct answer.
All of the above. These are just some of the many fees that credit cards can charge you for various uses.
2.
Having a credit card that does not report your payment history to the credit bureaus helps you build a good credit history.
Choose wisely. There is only one correct answer.
False. To build a credit history, you want the card to report your payment history. Otherwise, the bureaus won't know about it.
3.
To check your credit, you should get a credit report from just one of the three credit bureaus.
Choose wisely. There is only one correct answer.
False. You should check the reports from all three credit bureaus, as they may have different information from different creditors.
4.
The "principal" of a loan is the _______.
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Original amount borrowed. The principal is the original amount borrowed.
5.
If you don't plan to be paying off your credit card balance every month, then the interest rate will be more important to you than if you did pay off your balance each month.
Choose wisely. There is only one correct answer.
True. Since you will be carrying a balance, that means you will be paying interest every month. You will want the interest rate to be as low as possible.
6.
What is the minimum FICO score that is usually considered a safe risk?
Choose wisely. There is only one correct answer.
670. At 670, a person is considered a safe risk and typically receives a loan without a problem and at a low interest rate.
7.
What is the most effective action you can take against a creditor?
Choose wisely. There is only one correct answer.
Deal with them as soon as possible. The sooner you deal with them, the better the chance of sparing your credit and reducing the costs of a fight.