Personal Finance Courses: Credit

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

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1.
If you have bad credit and receive a credit card offer tailored to those with bad credit, what can you expect the interest rate to be like?
Choose wisely. There is only one correct answer.
Very high. Because you are deemed a risk, your interest rate would be quite high.
2.
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.
3.
Which of the following actions are outside collection agencies legally allowed to take against you?
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None of the above. All these actions are illegal.
4.
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.
5.
It is possible to use a credit card to earn more than you pay on it.
Choose wisely. There is only one correct answer.
True. You can earn rewards while paying your balance in full each month and avoiding fees.
6.
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.
7.
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.