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Personal Finance Courses: Credit

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1.
What collection efforts can a creditor that obtains a court judgment against you legally do?
Choose wisely. There is only one correct answer.
The creditor can take steps to garnish your wages and seize assets, such as bank accounts. The creditor can also file a lien against any real estate you own.
2.
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.
3.
Which of the following alternatives to a credit card would save you the most money in interest and fees?
Choose wisely. There is only one correct answer.
Creating a savings plan to pay for an item without using credit. This option would save you the most money. Its only downside is that it might take you several months to save up the money.
4.
What is the limit on the amount of credit you can get?
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It depends on what the credit agreement states. The credit agreement that you sign when applying for credit will state how much you can get. Often, this amount will rise over time if you are responsible with it.
5.
If you don't plan to be paying off your credit card balance every month, then the interest rate will be more important to you than if you did pay off your balance each month.
Choose wisely. There is only one correct answer.
True. Since you will be carrying a balance, that means you will be paying interest every month. You will want the interest rate to be as low as possible.
6.
Which of the following is probably the wisest use of credit?
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Pay off higher-interest loans before lower-interest loans.
7.
Opening several new credit accounts in a short period of time can result in an improved credit score.
Choose wisely. There is only one correct answer.
False. Opening several new credit accounts in a short period of time can result in a lowered credit score.