Credit Jeopardy

Credit Score Facts

100

The highest possible credit score. 

850

200

Percent of your score is based on payment history 

35%

300

Good way to build credit as a student. 

Use a secured credit card and pay on time consistently. 

Credit Math

100

Calculate interest: APR = 12%, balance = $1,000

$1,000 x (0.12/365) x 30 = $9.86

200

Average daily balance formula

Multiply each balance by the number of days it was active, total them, divide by number of days in billing cycle. 

300

A late payment will impact your credit score by ...

It will lower your score because payment history makes up 35% of your score.

Credit Protection Laws

100

Law the protects against identify theft

Fair and Accurate Credit Transactions Act (FACTA)

200

This law limits liability on a lost debit card up to $50

Electronic Funds Transfer Act

300

Act prevents discrimination in lending

Equal Credit Opportunity Act 

400

This is double jeopardy. If you get this right, double your points. 

Question: A credit card company raised your interest rate without notice. Which law is being violated? 

Credit CARD Act (Credit Card Accountability Responsibility and Disclosure Act) - It requires 45 day notice before raising interest rates. 

Real-world Scenarios

100

You lost your debit card 3 weeks ago. What should you do? 

Report it immediately to minimize liability; you may be liable for up to $500 if delayed. 

200

You were denied credit and not told why. Which law helps? 

Fair Credit Reporting Act

300

An ad says "$9.99/month" but omits the total cost. What law is involved? 

Truth in Lending Act