M5L4 Consumerism

Reading through a credit card disclosure, you see the APR for a specific card is set at 9.99%-23.99%. Which statement is true?

• When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed.

• Your APR will be within that range, depending on the strength of your credit history.

• The APR on credit cards is usually fixed so it won't be adjusted as long as you are a cardholder.

• With credit card APRs, creditholders like higher APRs because they earn more.

Credit card disclosure: "Your due date is at least 25 days after the end of the billing cycle. We will not charge you interest on new purchases provided that you have paid your previous balance in full by the due date each month." Identify the true statement. 

• The 25 days after the end of the billing cycle is referred to as the grace period.

• If you pay your previous balance in full after the due date, the credit card company will not charge you interest.

• If you make your credit card payment before the due date, you will be charged interest regardless of the amount of your payment.

• If you make the minimum payment on your card within the 25 day period, the credit card company will not charge you interest.

The business recently made the news of its ____ of several intelligence agencies into one super agency.

• Attainment

• Deferment

• Consolidation

• Installment

Frank and Jasmine are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five-year period. Frank has a credit score of 730 and Jasmine has a score of 600. Which of the following statements is true?

• Lenders are not allowed to charge people different interest rates based on their credit scores.

• Frank's monthly payment on the auto loan will be about $100 more than Jasmine's payment.

• Jasmines' monthly payment on the loan will be about $100 more than Frank's payment.

• Over the five year period, Jasmine and Frank will pay the same amount for the car loan.

Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?

• Take out some private student loans, even though he doesn't need them because he has grants and scholarships.

• Any time he borrows money from a friend or family member, be sure to pay it back promptly.

• Always say "credit" when asked "credit or debit" at a store.

• Ask his parents to cosign a credit card or add him as an authorized user on their credit card.

The final ____ on the loan is due next week. 

• Revolving

• Installment

• Deferment

• Consolidation

Which of the following statements is true?

• The cardholder is carrying a balance over from the last period.

• If the cardholder makes her minimum payment of $35.00 by the due date, she will not be charged interest on her balances.

• If the cardholder pays $523.00 by the due date on the bill, she will pay no interest to the credit card company.

• The cardholder was charged interest on her balances for the last period because she made her payment on time.

She values education ____ above all else.

• Consolidation

• Deferment

• Attainment

• Installment

Does student loan ____ count toward student loan forgiveness?

• Attainment

• Installment

• Revolving

• Deferment

I forgot to pay my credit card bill one month. For how long will that payment information show up on my credit history?

• Seven years

• One year

• Ten years

• Once I make the payment, it will disappear.