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

Credit card issuers are free to set up shop near large university campuses and offer free gifts-anything from free or discounted flights to free Frisbees.

Your credit score may affect how much you pay for health insurance.

Briefly describe the three credit card users.

Changes to credit card policies and rates are usually announced via "bill addendums," which are notices enclosed with your bill.

Susan has always maintained an excellent credit rating over the years. She has an annual income of $63,000, has lived at her current residence thirteen years, and has worked at the same job for eight years. Susan works in a clerical position, has two credit cards and maintains two bank accounts. Susan is very conservative and has all of her savings ($12,000) in a NOW account at her local bank. One of her credit cards has a balance of $550 and has an APR of 23%. Susan has been making monthly minimum payments on the credit card. Out of curiosity she would like to know how her credit card companies judge her creditworthiness and what she can do to improve her financial situation. -Which one of the following items of evaluation would Susan score the highest on?

One of the unpleasant secrets of using your credit card for a cash advance is that the APR on the cash advance is typically lower than the APR for normal purchases.

Describe the three primary methods used to determine interest charges on an unpaid credit card balance.

Susan has always maintained an excellent credit rating over the years. She has an annual income of $63,000, has lived at her current residence thirteen years, and has worked at the same job for eight years. Susan works in a clerical position, has two credit cards and maintains two bank accounts. Susan is very conservative and has all of her savings ($12,000) in a NOW account at her local bank. One of her credit cards has a balance of $550 and has an APR of 23%. Susan has been making monthly minimum payments on the credit card. Out of curiosity she would like to know how her credit card companies judge her creditworthiness and what she can do to improve her financial situation. -Susan was considering obtaining a new credit card but was told that too many applications for credit can cause one's FICO score to decrease?

The choice of a credit card is a matter of personal credit card philosophy.If you are a credit user,the most important decision factor is the card's

List five components of the Credit Card Accountability,Responsibility,and Disclosure (CARD)Act.

________ occurs when someone,without your knowledge or consent,uses your name,address,Social Security number,bank or credit card account number,or other identifying information to commit fraud or other crimes.

Cash advances generally require an upfront fee of 4 to 6 percent of the amount advanced.

Typically,the credit card issuer allows you a grace period,which means

The Credit Card Accountability,Responsibility,and Disclosure (CARD)Act established fee caps for cards.Card fees cannot total more than ________ of the initial credit limit.

The major differences between a premium prestige card and a regular credit card include

One of the following lists constitutes the five Cs of credit.Select the correct one.

Most credit cards offer a 31- to 35-day grace period from the date of the bill to make payments.

A convenience user doesn't really care what the APY is on their credit cards.

Michael has a credit limit and a balance of $3,000 on his Visa card.His car broke down,he charged the $500 repairs to his Visa which he knows put him over his credit limit for the month.His payment is due on the 20th so he made sure that he had his $750 payment to the post office on the 20th.Most likely,what penalties or fees,if any,will he incur?

Angela noticed a list of creditors at the bottom of her credit report.Some of the inquiries were voluntary and some were involuntary.What is the difference between the two?