Choose wisely. There is only one correct answer to each question.
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1.
What is the minimum FICO score that is usually considered a safe risk?
670. At 670, a person is considered a safe risk and typically receives a loan without a problem and at a low interest rate.
2.
If the annual percentage rate on your credit card is 18%, you will pay 18% interest on each month's balance.
False. The APR refers to the interest rate for the whole year. For this month, it would be only 1/12 of that, which would be 1.5%.
3.
What is the most effective action you can take against a creditor?
Deal with them as soon as possible. The sooner you deal with them, the better the chance of sparing your credit and reducing the costs of a fight.
4.
Why might it be a good idea to apply for your first credit card at your bank or credit union?
It already has a sense of your financial health. It already has a sense of your financial health. Because of this, it may be willing to offer you a credit card.
5.
What is the limit on the amount of credit you can get?
It depends on what the credit agreement states. The credit agreement that you sign when applying for credit will state how much you can get. Often, this amount will rise over time if you are responsible with it.
6.
If you are wealthy and don't need to take out any loans, it is still a good idea to have good credit.
True. You don't know for sure that you will still have your money in the future.
7.
Which of the following is probably the wisest use of credit?
Pay off higher-interest loans before lower-interest loans.