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?
Choose wisely. There is only one correct answer.
All of the above. Generally, all of these rates and fees will be in effect. Additional fees may also be charged.
2.
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.
3.
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.
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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.
4.
What is the name for the credit card fee that is charged to you when you take money out of your card?
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Cash advance fee. This fee is charged for cash advances made on your card.
5.
When you pay back a loan, what are you typically paying?
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Principal plus interest. Generally, you pay back the principal plus interest over the life of the loan. In certain cases, though, you might pay just the interest for a while.
6.
To check your credit, you should get a credit report from just one of the three credit bureaus.
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False. You should check the reports from all three credit bureaus, as they may have different information from different creditors.
7.
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.