Build: Credit Fundamentals

Front

Which of these are long-term impacts of having a good credit history? It lets you buy the things you want like clothes or cellphones. It gives you freedom to shop around for the best deal on tech. It prevents you from spending money on things you want instead of things you need. It's easier to pay for major purchases like cars, houses, and education.

Back

It's easier to pay for major purchases like cars, houses, and education.

Front

Which action could help improve your credit history? Options: Leave credit card bills outstanding. Always pay your credit card bill on time. Only get a debit card and avoid credit cards. Make a major purchase that you can't afford right now

Back

Always pay your credit card bill on time.

Front

What is the correct definition for the grace period?

Back

The time between when you make a purchase using the credit card and the date when the credit card company begins charging you interest.

Front

Why is it important to find a credit card with a lower APR?

Back

A lower APR means you pay less in interest.

Front

Why do lending and credit card companies use a borrower's Social Security number when opening an account?

Back

To protect against fraud

Front

What is a reason to pay more than the minimum payment due on your credit statement each month?

Back

You save money on interest.

Front

Which statement is correct about Annual Percentage Rate (APR) ? Options: It is better for the borrower if the rate is higher. It stands for Amortized Percentage Rate. It has nothing to do with how much interest you pay.

Back

It is the interest rate you pay on balances you carry over from month to month.

Front

What statement is correct about grace periods? A. B. C. D. Every credit card has a grace period. You are charged interest during the grace period. A short grace period is better for the borrower. A grace period is the time between making a purchase and when the company begins charging you interest.

Back

A grace period is the time between making a purchase and when the company begins charging you interest.

Front

Which is the best strategy for paying your credit card bill? Options: Pay the entire balance every month., Pay half the balance every month., Pay the minimum payment every month., Make no monthly payments at all.

Back

Pay the entire balance every month.

Front

Which action is best if you suspect you're the victim of identity theft? Options: Check your credit report, Change your email address, Get a PO box, Change your phone number

Back

Check your credit report