Basics Beginner: Credit

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1.
Which of the following is the largest part of your FICO score?
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Payment history. Your payment history carries more weight than any other measure.
2.
Some credit cards target those with bad credit. These credit cards usually have which of the following?
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All of the above. Generally, all of these rates and fees will be in effect. Additional fees may also be charged.
3.
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.
4.
The "principal" of a loan is the _______.
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Original amount borrowed. The principal is the original amount borrowed.
5.
What is the main reason behind using a credit card to buy things that you already have cash for?
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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.
6.
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.
7.
During what hours does the law allow debt collection agencies to call you?
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Collection agencies may call only at reasonable times. The law says that calls before 8 a.m. or after 9 p.m. are unreasonable.