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Personal Finance Courses: Credit

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1.
An example of revolving credit is _______.
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A credit card agreement. Credit card agreements are an example of revolving credit.
2.
What is the minimum FICO score that is usually considered a safe risk?
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670. At 670, a person is considered a safe risk and typically receives a loan without a problem and at a low interest rate.
3.
It is possible to use a credit card to earn more than you pay on it.
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True. You can earn rewards while paying your balance in full each month and avoiding fees.
4.
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%.
5.
How long can a bankruptcy stay on your credit report?
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Seven or 10 years, depending on the type of bankruptcy. At present, they can stay this long.
6.
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.
7.
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.