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1.
Credit reports naturally self-correct any errors in your payment history.
False. Unfortunately, it is up to you to be vigilant and correct errors.
2.
If you want to close one of your credit cards, which of the following will affect your credit score more?
Closing one with a balance on it. When you close a card, your credit limit becomes zero and it may thus appear maxed out.
3.
Which of the following is a good reason to have a credit card?
A credit card can be valuable in case an emergency expense exceeds your available funds on hand. A credit card can be a lifesaver if you have to pay for emergency expenses that go beyond your savings.
4.
When it comes to negative information in your credit report, most negative information will appear in your credit report for _______.
Seven years. Although some negative information can appear for longer, most negative information will appear in your credit report for seven years.
5.
If you only qualify for a card with high interest rates and a high annual fee, you will almost invariably be stuck with those unfavorable terms forever.
False. If you use your high-rate, high-fee card responsibly, after several months you can apply for a card with better terms.