CREDIT 1

In Month 1 of this loan it accounts for $1,041.50 of the payment. In Month 350, the debtor only need to pay 59.60 towards this amount. The cost of borrowing money is referred to as _______________.

• Interest

• Annual Percentage Rate

• Credit

• Credit line

The amount charged if your payment is received after the billing due date.

• late payment fee

• overdue fee

• withdrawal fee

• loser fee

The maximum amount you are allowed to carry as a balance on the card

• Interest

• Credit limit

• ARP

• All are correct

One of the 3 C's of credit that shows a person's willingness to pay is

• Capital

• Collateral

• Character

• Capacity

Benefits of credit cards include:

• safe and convenient, bonuses are offered

• allows you to build a positive credit report

• needed for reservations and online shopping

• All of these

Which one is considered a danger of using a credit card

• No cash needed

• leads to over spending

• convenient

• earns rewards

Your credit score is not configured off of which of the following:

• Payment history

• Amount owed

• Where you live

• Length of credit history

One of the 3 C's of credit that shows one's ability to pay is

• Capital

• Collatreral

• Character

• Capacity

Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.

• True

• False

One of the 3 C's of credit that refers to property that secures the loan is

• Character

• Collateral

• Capacity

• Conditions