Personal Finance Courses: Credit

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

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1.
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.
2.
Having credit available is necessary for most of us who want to _______.
Choose wisely. There is only one correct answer.
All of the above. For most of us, we need credit to do these things.
3.
Which of the following alternatives to a credit card would save you the most money in interest and fees?
Choose wisely. There is only one correct answer.
Creating a savings plan to pay for an item without using credit. This option would save you the most money. Its only downside is that it might take you several months to save up the money.
4.
The "principal" of a loan is the _______.
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Original amount borrowed. The principal is the original amount borrowed.
5.
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.
6.
The highest FICO score possible is _______.
Choose wisely. There is only one correct answer.
850. At present, this is the highest possible score. You want to get as close as possible to this score. The closer you get, the more privileges you get when it comes to taking out loans.
7.
Which of the following is probably the wisest use of credit?
Choose wisely. There is only one correct answer.
Pay off higher-interest loans before lower-interest loans.