Personal Finance Courses: Credit

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1.
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.
2.
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.
3.
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.
4.
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.
5.
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.
6.
Having credit available is necessary for most of us who want to _______.
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All of the above. For most of us, we need credit to do these things.
7.
It is more cost effective for you to buy something outright than pay for it with credit.
Choose wisely. There is only one correct answer.
True. You can avoid finance charges this way.