Personal Finance Courses: Credit

Test your knowledge

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

0%
Keep studying!
Review your answers below to learn more.
1.
An example of revolving credit is _______.
Choose wisely. There is only one correct answer.
A credit card agreement. Credit card agreements are an example of revolving credit.
2.
When it comes to negative information in your credit report, most negative information will appear in your credit report for _______.
Choose wisely. There is only one correct answer.
Seven years. Although some negative information can appear for longer, most negative information will appear in your credit report for seven years.
3.
If you are wealthy and don't need to take out any loans, it is still a good idea to have good credit.
Choose wisely. There is only one correct answer.
True. You don't know for sure that you will still have your money in the future.
4.
What is the most effective action you can take against a creditor?
Choose wisely. There is only one correct answer.
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.
What is the minimum FICO score that is usually considered a safe risk?
Choose wisely. There is only one correct answer.
670. At 670, a person is considered a safe risk and typically receives a loan without a problem and at a low interest rate.
6.
If you have to deposit a few hundred dollars into your bank in order to get a credit card, what kind of card is that called?
Choose wisely. There is only one correct answer.
Secured. Secured cards require you to deposit money. This is the money that you will be drawing from with your card.
7.
A credit card's annual percentage rate is _______.
Choose wisely. There is only one correct answer.
The interest rate you must pay over the course of a year. The APR is what you would pay over a whole year. What you pay each month on your card is 1/12 of that.