Credit Scores and Checking Unit 2

What factor has the highest impact on your credit score?

• Types of credit in use

• New credit

• Payment history

• Amounts owed

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

• Rewards Card

• Secured Credit Card

• Unsecured Credit Card

• Direct Debit Card

When writing a check, what is the first step you should take?

• Sign the back of the check

• Write the date on the check

• Fill in the amount of money you are paying

• Write the name of the person or company you are paying

What does APR stand for in relation to credit cards?

• Annual Percentage Rate

• Automated Payment Requirement

• Average Percentage Rate

• Annual Payment Rate

Which of the following factors does NOT affect your credit score?

• Your income

• Your credit utilization ratio

• Your payment history

• The length of your credit history

What is the main difference between a secured and an unsecured credit card?

• A secured credit card requires a security deposit

• An unsecured credit card has a higher interest rate

• A secured credit card cannot be used for online purchases

• An unsecured credit card is only available to people with high credit scores

What is the purpose of the memo line on a check?

• To write the account number of the check recipient

• To provide additional information about the payment

• To write the check number for personal records

• It is legally required for processing the check

Which of the following is a benefit of having a good credit score?

• Eligibility for higher-paying jobs

• Access to better credit card offers

• Automatic approval for all loan applications

• No need for a security deposit on utilities

How often should you check your credit report?

• Once a week

• Once a month

• At least once a year

• Only when applying for a loan

What is a common fee associated with credit cards that users should be aware of?

• Membership fee

• Overdraft fee

• Transaction fee

• Late payment fee