Personal Finance Courses: Credit

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1.
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.
2.
Some credit cards target those with bad credit. These credit cards usually have which of the following?
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All of the above. Generally, all of these rates and fees will be in effect. Additional fees may also be charged.
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.
Debt collectors do not have to disclose the fact that they are debt collectors when they contact you about a past-due debt.
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False. By law, they must.
5.
Paying the minimum monthly payment on your credit is affordable, but a major downside is that it takes much longer to pay off.
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True. The less you pay each month, the longer it takes to pay off. Plus, you pay a huge amount of interest.
6.
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.
7.
Which of the following is probably the wisest use of credit?
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Pay off higher-interest loans before lower-interest loans.