Personal Finance Courses: Credit

Test your knowledge

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1.
Which of the following actions are outside collection agencies legally allowed to take against you?
Choose wisely. There is only one correct answer.
None of the above. All these actions are illegal.
2.
If you are wealthy and don't need to take out any loans, it is still a good idea to have good credit.
Choose wisely. There is only one correct answer.
True. You don't know for sure that you will still have your money in the future.
3.
Which of the following is the largest part of your FICO score?
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Payment history. Your payment history carries more weight than any other measure.
4.
Credit cards may charge fees for which of the following?
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All of the above. These are just some of the many fees that credit cards can charge you for various uses.
5.
Credit is free money.
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False. Credit is a loan of money, meaning you must pay it back with interest after using it. It is not free money.
6.
How long can a bankruptcy stay on your credit report?
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Seven or 10 years, depending on the type of bankruptcy. At present, they can stay this long.
7.
It is possible to use a credit card to earn more than you pay on it.
Choose wisely. There is only one correct answer.
True. You can earn rewards while paying your balance in full each month and avoiding fees.