Personal Finance Courses: Credit

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1.
What is the minimum FICO score that is usually considered a safe risk?
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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.
How long can a bankruptcy stay on your credit report?
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Seven or 10 years, depending on the type of bankruptcy. At present, they can stay this long.
3.
An example of revolving credit is _______.
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A credit card agreement. Credit card agreements are an example of revolving credit.
4.
What is the most effective action you can take against a creditor?
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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.
5.
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.
6.
Which of the following is a good reason to have a credit card?
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A credit card can be valuable in case an emergency exceeds your available funds on hand. A credit card can be a lifesaver if you have to pay for emergency expenses that go beyond your savings.
7.
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.