WISE Review #2

What is a credit card cash advance?

• credit card holders get cash as points for using their card

• credit card holders can take out cash for high interest rates

• credit cards are the same thing as cash

• when people do not have to pay back their credit card bill

What law protects consumers in their dealings with lenders and creditors?

• Truth in Lending Act

• Usury Laws

• Fair Credit Act

• Lending Smart Law

What happens if you only pay the minimum due on your credit card?

• your credit card bill will be paid in full

• you will not have to pay any interest

• you will pay it off quicker and pay less in interest

• it will take longer to pay it off and you will have more interest

What is NOT a consequence of a paying a credit card bill late?

• you will be charged a late fee

• your credit score will fall

• your credit score will rise

• you will be charged a higher interest rate

What makes up your credit score?

• length of credit history

• amounts owed

• new credit

• all of the above

How does the degree of risk influence the interest rate charged for credit?

• the higher the risk= the higher the interest rate

• the higher the risk = the lower the interest rate

• the lower the risk = the higher the interest rate

• risk does not influence interest rate

What is a debt to credit ratio?

• how much debt you have from all your loans

• the amount of credit you have compared to the credit you are using

• how much a creditor is willing to lend you

• how many assets you have compared to your debts

What is the purpose of a credit report?

• it calculates your credit score

• it helps you relieve debts

• it details the use of your credit

• it lets you apply for additional credit

What is not one of the three credit reporting agencies?

• Equifax

• TransUnion

• Experion

• FASFA

If your credit card is stolen, what is the limit you are able to pay back?

• $50

• $250

• $100

• unlimited