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Personal Finance Courses: Credit

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1.
If you have to deposit a few hundred dollars into your bank in order to get a credit card, what kind of card is that called?
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Secured. Secured cards require you to deposit money. This is the money that you will be drawing from with your card.
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.
Having no credit profile can result in you being denied credit.
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True. Creditors like to know that you have a history of using credit.
4.
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.
5.
If the annual percentage rate on your credit card is 18%, you will pay 18% interest on each month's balance.
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False. The APR refers to the interest rate for the whole year. For this month, it would be only 1/12 of that, which would be 1.5%.
6.
To check your credit, you should get a credit report from just one of the three credit bureaus.
Choose wisely. There is only one correct answer.
False. You should check the reports from all three credit bureaus, as they may have different information from different creditors.
7.
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.