Personal Finance Courses: Credit

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1.
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.
2.
What collection efforts can a creditor that obtains a court judgment against you legally do?
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The creditor can take steps to garnish your wages and seize assets, such as bank accounts. The creditor can also file a lien against any real estate you own.
3.
When you are in the market for a credit card, one of the best ways to do comparison shopping is to make use of _______.
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The Internet. There are Websites that provide comparisons of different credit card programs, and many credit card providers use the Internet to make information about their programs easily available.
4.
Having no credit profile can result in you being denied credit.
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True. Creditors like to know that you have a history of using credit.
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.
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.
7.
What is the main reason behind using a credit card to buy things that you already have cash for?
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It helps build a good credit record. Having the money already on hand makes it easy to pay your bill, and in the future, you will benefit from the enhanced credit history.