Personal Finance Courses: Credit

Test your knowledge

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

0%
Keep studying!
Review your answers below to learn more.
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.
The "principal" of a loan is the _______.
Choose wisely. There is only one correct answer.
Original amount borrowed. The principal is the original amount borrowed.
3.
Having no credit profile can result in you being denied credit.
Choose wisely. There is only one correct answer.
True. Creditors like to know that you have a history of using credit.
4.
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.
5.
Credit cards may charge fees for which of the following?
Choose wisely. There is only one correct answer.
All of the above. These are just some of the many fees that credit cards can charge you for various uses.
6.
Some credit cards target those with bad credit. These credit cards usually have which of the following?
Choose wisely. There is only one correct answer.
All of the above. Generally, all of these rates and fees will be in effect. Additional fees may also be charged.
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.