Personal Finance Courses: Credit

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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.
Opening several new credit accounts in a short period of time can result in an improved credit score.
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False. Opening several new credit accounts in a short period of time can result in a lowered credit score.
3.
What is the limit on the amount of credit you can get?
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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.
4.
Paying the minimum monthly payment on your credit is affordable, but a major downside is that it takes much longer to pay off.
Choose wisely. There is only one correct answer.
True. The less you pay each month, the longer it takes to pay off. Plus, you pay a huge amount of interest.
5.
If you have questions about the types of collection practices that are allowed, contact the _______ in your state to see what the state law allows.
Choose wisely. There is only one correct answer.
Consumer protection bureau. Your state's consumer protection bureau will have information about state laws governing credit collection practices that operate together with federal regulations.
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?
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Secured. Secured cards require you to deposit money. This is the money that you will be drawing from with your card.
7.
What is the main reason behind using a credit card to buy things that you already have cash for?
Choose wisely. There is only one correct answer.
It helps build a good credit record. Having the money already on hand makes it easy to pay your bill, and in the future, you will benefit from the enhanced credit history.