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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.
What is the name for the credit card fee that is charged to you when you take money out of your card?
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Cash advance fee. This fee is charged for cash advances made on your card.
3.
What collection efforts can a creditor that obtains a court judgment against you legally do?
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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.
4.
When you are in the market for a credit card, one of the best ways to do comparison shopping is to make use of _______.
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The Internet. There are Websites that provide comparisons of different credit card programs, and many credit card providers use the Internet to make information about their programs easily available.
5.
Which of the following is the largest part of your FICO score?
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Payment history. Your payment history carries more weight than any other measure.
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.
Which of the following is a good reason to have a credit card?
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A credit card can be valuable in case an emergency exceeds your available funds on hand. A credit card can be a lifesaver if you have to pay for emergency expenses that go beyond your savings.