Exam 6: Using Credit Cards: The Role of Open Credit

Jerome has three major credit cards and makes payments on them each month. He has had one of them for six years, another for three years, and the last for eleven months. Making just the minimum payment has become automatic at this point, and Jerome barely even looks at the statements. Jerome is beginning to think that his approach to credit may be faulty, and he wants fo find out how to adjust it. He just applied for two additional credit cards. -What advice might you give to Jerome?

A credit bureau is a private organization that maintains credit information on individuals, which it allows subscribers to access for a fee.

What is the main distinguishing feature(s) for T&E cards?

Kendra always thought the grace period feature of her credit card was such a wonderful idea. Why, in essence, she is getting her purchases interest free during this time. After taking Dr. Art Keown's Personal Finance course she learned a startling truth about grace periods.

Which of the following regarding credit application analysis is incorrect?

There is no cash advance fee when you use your credit card at an ATM machine.

A single-purpose card is a credit card that can be used only at a specific company.

A convenience user of credit cards is someone who pays off the credit card balance each month.

The Fair and Accurate Credit Transactions Act (FACT) allows everyone to a free copy of their credit report every year. Why is it a good idea to check your credit report every year?

For the convenience credit card user the interest rate is ________.