Personal Finance Courses: Credit

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

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1.
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.
2.
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.
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.
As a general rule, credit exists to enable you to buy things that _______.
Choose wisely. There is only one correct answer.
You cannot afford to buy right now. Credit exists to help you buy things you can't afford right now. While the other choices may or may not be true, they are not the reason credit exists in the first place.
5.
To check your credit, you should get a credit report from just one of the three credit bureaus.
Choose wisely. There is only one correct answer.
False. You should check the reports from all three credit bureaus, as they may have different information from different creditors.
6.
Why might it be a good idea to apply for your first credit card at your bank or credit union?
Choose wisely. There is only one correct answer.
It already has a sense of your financial health. It already has a sense of your financial health. Because of this, it may be willing to offer you a credit card.
7.
During what hours does the law allow debt collection agencies to call you?
Choose wisely. There is only one correct answer.
Collection agencies may call only at reasonable times. The law says that calls before 8 a.m. or after 9 p.m. are unreasonable.