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Personal Finance Courses: Credit

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1.
What is the minimum FICO score that is usually considered a safe risk?
Choose wisely. There is only one correct answer.
670. At 670, a person is considered a safe risk and typically receives a loan without a problem and at a low interest rate.
2.
Debt collectors do not have to disclose the fact that they are debt collectors when they contact you about a past-due debt.
Choose wisely. There is only one correct answer.
False. By law, they must.
3.
It is more cost effective for you to buy something outright than pay for it with credit.
Choose wisely. There is only one correct answer.
True. You can avoid finance charges this way.
4.
If you have to deposit a few hundred dollars into your bank in order to get a credit card, what kind of card is that called?
Choose wisely. There is only one correct answer.
Secured. Secured cards require you to deposit money. This is the money that you will be drawing from with your card.
5.
If you are wealthy and don't need to take out any loans, it is still a good idea to have good credit.
Choose wisely. There is only one correct answer.
True. You don't know for sure that you will still have your money in the future.
6.
Paying the minimum monthly payment on your credit is affordable, but a major downside is that it takes much longer to pay off.
Choose wisely. There is only one correct answer.
True. The less you pay each month, the longer it takes to pay off. Plus, you pay a huge amount of interest.
7.
An example of revolving credit is _______.
Choose wisely. There is only one correct answer.
A credit card agreement. Credit card agreements are an example of revolving credit.