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

Mary is 38 years old and many of her friends have gotten into trouble using their credit cards to buy things they can't afford.She feels lucky that her grandmother told her that credit is dangerous and that she should always pay cash for everything.So far,Mary has never had credit in her name and even paid cash for her car.From a personal finance perspective,what advice would you give to Mary?

Your credit card company is required to send you a notice 45 days before they can increase your interest rate,change certain fees (such as annual fees,cash-advance fees,and late fees),or make other significant changes to the terms of your card.

Based on his credit card usage,which of the following aspects of a credit card should be most important to Jerome?

Typically,an annual fee charge ranges from $10 to $100,but the American Express Centurion Card charges a ________ annual fee-and there's also a ________ initiation fee for the first year.

Using the Adjusted Balance Method: If Monty sends in a payment for $1,000,how much will the finance charge be on his remaining balance? (Use the $6,000 balance for your calculations. )

In 2017 the average APR on standard variable-rate credit cards was

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

What is the difference between voluntary and involuntary inquires?

Teaser rates are very low.How long do they last? Is there any real benefit in them?

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

Nico likes to go shopping.Every time he goes to a new store,he fills out an application for a store credit card so that he can get a 20 percent discount on his purchases that day.Yesterday,when he was trying to buy a new car,the dealer turned down his credit request.Nico can't understand why,because he thought he had good credit.If you looked at his credit report,what is the most likely reason he was denied credit?

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

Using your credit cards for cash advances is a relatively cheap way to borrow money because you usually do not start paying interest until the next billing period.

Assuming the APR on your credit card is 18% and your average daily balance this month was $10,000,what will your interest or finance charges for the month be?

Tawnya currently has six bank credit cards,five retailer credit cards,and a T&E card left over from when she was in sales.She wants to make sure her credit score is as high as it can be.What advice would you give her to improve her credit score?

Your credit score affects

In an emergency,you used your credit card for a $500 cash advance.You just received your statement and your total balance due is $1,859,and the cash advance was the most recent charge.You want to be sure to pay for the cash advance so you send in a payment of $700.Your credit card has an APR of 12 percent.How much of your payment will apply to the cash-advance balance?

Late library fines and unpaid parking tickets can hurt your credit score.

Non-profit Credit Counselors should be avoided due to their high fees.

Which of the following apply to getting a cash advance with a credit card?