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Personal Finance Courses: Credit

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Review your answers below to learn more.
1.
An example of revolving credit is _______.
Choose wisely. There is only one correct answer.
A credit card agreement. Credit card agreements are an example of revolving credit.
2.
If you are wealthy and don't need to take out any loans, it is still a good idea to have good credit.
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True. You don't know for sure that you will still have your money in the future.
3.
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.
4.
Why might it be a good idea to apply for your first credit card at your bank or credit union?
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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.
5.
Which of the following actions are outside collection agencies legally allowed to take against you?
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None of the above. All these actions are illegal.
6.
Opening several new credit accounts in a short period of time can result in an improved credit score.
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False. Opening several new credit accounts in a short period of time can result in a lowered credit score.
7.
Which of the following is probably the wisest use of credit?
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Pay off higher-interest loans before lower-interest loans.