Personal Finance Courses: Credit

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1.
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.
2.
To check your credit, you should get a credit report from just one of the three credit bureaus.
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False. You should check the reports from all three credit bureaus, as they may have different information from different creditors.
3.
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.
4.
The "principal" of a loan is the _______.
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Original amount borrowed. The principal is the original amount borrowed.
5.
A credit card's annual percentage rate is _______.
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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.
6.
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.
7.
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.