Stocks + Credit

Which of the following statements comparing credit and debit cards is TRUE?

• Far more businesses accept credit cards than debit cards

• Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

• Credit card companies provide you with a monthly statement, while debit cards do not

• With debit cards, you're spending your own money at point of sale, while with credit cards, you're promising to pay back the money eventually

• none of the above

What is an outstanding balance?

• The amount you paid in your minimum payment

• The amount you spent in total

• The amount you still owe after you have made your most recent payment

• The amount you still have in your life of credit

What is the advantage of paying your credit card balance in full each month?

• You will incur only a small "paid in full" fee on your next credit card statement.

• You pay only a small amount of interest.

• You have less of your credit limit available, therefore, less temptation to spend. 

• You avoid paying any interest and fees.

• all of the above

What are the three most popular credit bureaus?

• Equifax

• TransUnion

• All Of The Above

• Experian

Why is a good credit score important?

• It makes renting easier and you get approved more often.

• You can get benefits, like qualifying for lower credit card interest.

• It's cheaper to borrow money when you need it.

• All of the above.

What is Interest?

• The amount you're borrowing.

• Percentage that your financial institution charges you for lending you the money.

• The amount of time you have to pay it all back.

• None of the above

Which of the following is NOT a typical type of credit?

• Mortgage

• Overdraft

• Credit Card

• Pre-Paid Debit Card

What may NOT impact the interest rate on your loans?

• Your relationship with the financial institution

• Your credit score

• The loan amount

• Your level of education

• none of the above

How do you avoid paying interest on your credit card (or any other loan for that matter)?

• Always make the minimum payment over time

• Pay interest 1st, then pay what you can on leftover balance

• Always make the full payment on time

• Pay the principal 1st, then pay what you can on interest

• all of the above

Which is TRUE when you make only the minimum payment each month?

• You are charged interest on the remaining balance

• Your credit line is restored to its maximum amount

• Credit card companies have permission to sell your information

• It is the fastest way to pay off your debt

• all of the above