Course Catalog > Personal Finance > Courses
Personal Finance Courses: Credit

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Shopping for a good credit card deal is easy because there are only a few large organizations that offer credit cards.
Choose wisely. There is only one correct answer.
False. There are thousands of banks, credit unions, and other organizations that offer credit cards.
2.
Some credit cards target those with bad credit. These credit cards usually have which of the following?
Choose wisely. There is only one correct answer.
All of the above. Generally, all of these rates and fees will be in effect. Additional fees may also be charged.
3.
If you have questions about the types of collection practices that are allowed, contact the _______ in your state to see what the state law allows.
Choose wisely. There is only one correct answer.
Consumer protection bureau. Your state's consumer protection bureau will have information about state laws governing credit collection practices that operate together with federal regulations.
4.
The higher your credit score is, the _______ the interest rates will be on loans you take out.
Choose wisely. There is only one correct answer.
Lower. If you have a high credit score, that tells lenders that you are a responsible borrower, and they will charge you a lower interest rate than if your credit score were low.
5.
When it comes to negative information in your credit report, most negative information will appear in your credit report for _______.
Choose wisely. There is only one correct answer.
Seven years. Although some negative information can appear for longer, most negative information will appear in your credit report for seven years.
6.
When you pay back a loan, what are you typically paying?
Choose wisely. There is only one correct answer.
Principal plus interest. Generally, you pay back the principal plus interest over the life of the loan. In certain cases, though, you might pay just the interest for a while.
7.
What is the name for the credit card fee that is charged to you when you take money out of your card?
Choose wisely. There is only one correct answer.
Cash advance fee. This fee is charged for cash advances made on your card.