Personal Finance Courses: Credit

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1.
How long can a bankruptcy stay on your credit report?
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Seven or 10 years, depending on the type of bankruptcy. At present, they can stay this long.
2.
Having a credit card that does not report your payment history to the credit bureaus helps you build a good credit history.
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False. To build a credit history, you want the card to report your payment history. Otherwise, the bureaus won't know about it.
3.
What is the name for the credit card fee that is charged to you when you take money out of your card?
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Cash advance fee. This fee is charged for cash advances made on your card.
4.
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.
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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.
5.
What is the minimum FICO score that is usually considered a safe risk?
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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.
The "principal" of a loan is the _______.
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Original amount borrowed. The principal is the original amount borrowed.
7.
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.