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

Assuming the APR on your credit card is 24 percent and your average daily balance this month was $8,000,what will your interest or finance charges for the month be?

The lowest FICO a consumer can achieve is

Which method sums the outstanding balances owed each day during the billing period and divides by the number of days in the period?

________ is not information generally found in your credit report.

The CARD Act of 2009 toned down the actions of credit card issuers by

Getting a credit card while a college student is an excellent idea because

Which of the following regarding credit application analysis is incorrect?

Credit scoring is

Consider the "Five Cs of Credit." The category that considers your current income level and current borrowing level is

Monty currently has a Visa card from his bank with the following terms: 18% on purchases, 24% on cash advances with a 4% cash advance fee on the amount, and a default or penalty rate of 36%. His current statement shows a balance of $6,000. So far he has only taken one cash advance, withdrawing $1,000 from a casino in Las Vegas a year ago, which he has already paid off. Lately he has been having a hard time paying more than the minimum payment of 4% of his balance. The only assets he owns are a seven-year-old car and a $2,500 certificate of deposit that has a 5% APR. -When you withdraw cash from an ATM using your credit card

To a credit user,the perks and benefits are the most important determinant when choosing a credit card.

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 has never seen a copy of her credit report.Which of the following is not a credit bureau?

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

The main factor that determines the cost of a line of credit is the ________,which is also considered the true simple interest rate paid over the life of the loan.

Consider the "Five Cs of Credit." The category that considers the size of your investment holding or portfolio is

Financially savvy people take advantage of the grace period on major purchases and pay the balance off in full;thus avoiding finance charges.

Having completed a personal finance class,you are now ready to give some advice to your free-spending friends.Which one is unwise?

Which of the following are important to convenience users of credit cards?

A company that gathers and sells consumers' financial history to creditors is a

Cedrick's credit card was stolen,and he did not realize that it was stolen until he received his most recent billing statement.He contacted the credit card company immediately after he read his statement.Fraudulent charges were as follows: $250 for a Blue-ray player,$600 for a new set of tires,$200 cash withdrawal,and $40 in interest charges on the above items.He did not carry credit card insurance.How much is Cedrick's potential maximum liability?