Personal Finance Courses: Credit

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1.
Some credit cards target those with bad credit. These credit cards usually have which of the following?
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All of the above. Generally, all of these rates and fees will be in effect. Additional fees may also be charged.
2.
Opening several new credit accounts in a short period of time can result in an improved credit score.
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False. Opening several new credit accounts in a short period of time can result in a lowered credit score.
3.
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.
4.
Debt collectors do not have to disclose the fact that they are debt collectors when they contact you about a past-due debt.
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False. By law, they must.
5.
A credit card's annual percentage rate is _______.
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The interest rate you must pay over the course of a year. The APR is what you would pay over a whole year. What you pay each month on your card is 1/12 of that.
6.
It is possible to use a credit card to earn more than you pay on it.
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True. You can earn rewards while paying your balance in full each month and avoiding fees.
7.
The "principal" of a loan is the _______.
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Original amount borrowed. The principal is the original amount borrowed.