Personal Finance Courses: Credit

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1.
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.
2.
Which of the following is probably the wisest use of credit?
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Pay off higher-interest loans before lower-interest loans.
3.
The highest FICO score possible is _______.
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850. At present, this is the highest possible score. You want to get as close as possible to this score. The closer you get, the more privileges you get when it comes to taking out loans.
4.
Credit cards may charge fees for which of the following?
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All of the above. These are just some of the many fees that credit cards can charge you for various uses.
5.
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.
6.
If you don't plan to be paying off your credit card balance every month, then the interest rate will be more important to you than if you did pay off your balance each month.
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True. Since you will be carrying a balance, that means you will be paying interest every month. You will want the interest rate to be as low as possible.
7.
Having credit available is necessary for most of us who want to _______.
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All of the above. For most of us, we need credit to do these things.