Chapter 4 Going into Debt 12/2024 Practice

Front

Which of the following is your credit score based on? payment history, amount owed, new credit opened

Back

all of these

Front

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when:

Back

selecting a credit card

Front

If you only pay the minimum payment each month on your credit card, what will happen?

Back

you will pay more in interest

Front

If you build a good credit history, it will lead to lower rates on revolving credit and other forms of credit.

Back

true

Front

Under the Truth in Lending Act, what must all organizations state?

Back

all organizations must state the true APR that they charge their customers

Front

If you spread out your loan repayment over time, it will usually mean a _____________ interest rate.

Back

higher

Front

Comparing which of the following is the best way to select a credit card? annual fees, foreign transaction fees, balance transfer fees, APRs

Back

APRs

Front

A measure of your financial ability to repay a loan:

Back

capacity

Front

What is the best way to manage your credit?

Back

make small purchases on your credit card and pay them off in full by the due date

Front

What is the BEST way to maintain a good credit score?

Back

pay all loans and credit card bills on time, managing your debt wisely