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Personal Finance Courses: Credit

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1.
Credit is free money.
Choose wisely. There is only one correct answer.
False. Credit is a loan of money, meaning you must pay it back with interest after using it. It is not free money.
2.
Which of the following is probably the wisest use of credit?
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Pay off higher-interest loans before lower-interest loans.
3.
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.
4.
Why might it be a good idea to apply for your first credit card at your bank or credit union?
Choose wisely. There is only one correct answer.
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.
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.
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.
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.