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Personal Finance Courses: Credit

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1.
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.
2.
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.
3.
Shopping for a good credit card deal is easy because there are only a few large organizations that offer credit cards.
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False. There are thousands of banks, credit unions, and other organizations that offer credit cards.
4.
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.
5.
The higher your credit score is, the _______ the interest rates will be on loans you take out.
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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.
6.
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.
7.
When you pay back a loan, what are you typically paying?
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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.