Video from Financing Large Expenditures

What are the two types of money that Jasmine can use to pay for things?

• Cash and check

• Debit and credit

• Credit and loan

• Credit and cash

What is the consequence of not paying off the credit card balance by the due date?

• No consequence

• Additional fees

• Lower interest rates

• Higher credit score

What is the benefit of always paying off the credit card balance in full?

• No interest charges

• Higher credit limit

• Lower annual fees

• More rewards points

What are some rewards that credit card users can earn?

• Discounts on purchases

• Cash back or airline miles

• Free credit score reports

• Lower interest rates

What is a credit score?

• The amount of money in a bank account

• The number of credit cards owned

• A summary of credit history

• The total debt owed

What are the requirements for most credit cards?

• Credit score of at least 600

• Annual income of at least $15,000

• Debt payment to income ratio below 36%

• All of the above

What are the requirements for a student credit card?

• Full-time student of at least 18 years old

• Small amount of income or creditworthy co-signer

• Good credit history and full-time job

• Parent's credit score and income

What is the responsibility of a co-signer on a credit card?

• Make all the payments

• Share liability for missed payments

• Receive rewards points

• Increase credit limit

What is the benefit of being added as an authorized user to a family's credit card?

• Get your own credit card

• Improve credit score quickly

• Avoid any credit mistakes

• Receive higher credit limit

What is a potential drawback of being added as an authorized user to a family's credit card?

• Parents are liable for payments

• No access to credit card

• Lower credit score

• Higher interest rates