Banking
False
What does, FDIC insurance actually cover and what is the standard coverage per depositor?
$250,000.00 per signer
What happens to credit card debt if the primary cardholder passes away.
The debt is transferred to the estate.
Can you negotiate your credit card interest rate?
Yes, if you have a good history of on time payments and not going over your credit limit.
What are the three names of the credit bureaus?
Experian, TransUnion and Equifax
What is the difference between a hard and a soft inquiry?
A soft inquiry is used in preapprovals and does not show on your inquiry section of your credit report. A hard inquiry is used for approvals and it will show for two years on your credit report inquiry list.
What is the purpose of a signature card when you open a bank account?
We use this to confirm your signature on checks and other documents.
What is a deferred interest promotion and how can it cost you money?
If the sum of the charges are not paid by the end date of the promotion then the interest charged is from the date of purchase.
What is the difference between a secured and unsecured credit card?
A secured cash is backed by funds that are restricted for use until the card is closed. The unsecured is based off of your credit score, credit history and income-your availability to pay it back.
What is the routing number on a check used for?
To identify a bank/your bank.
Can a bank close your account without your permission?
Yes, it is listed in the account agreement and disclosures when the account is first opened.
What is a cash advance APR and how is it difference from a purchase APR?
Cash advance APRs are higher than purchase APRs.
When you receive special offers for credit cards an at 0% percent interest rate, what type of purchase does this normally apply to?
Purchases and sometimes balance transfers.
How often do credit card companies report to the three credit bureaus?
Monthly
What is the different between a money order and a cashiers check?
Money orders are good only up to a certain amount and cashier checks are unlimited. Money orders typically expire after six months and cashier checks are one year and possible longer.
What is escheatment regarding bank accounts?
When an account has not had any activity it goes into dormant status and then later turned over to the state.
Does paying off your credit card balance in full every month prevent you from paying interest?
Yes, if it is paid before the end of the statement end date.
What is the minimum payment warning on your credit cars statement trying to tell you?
It provides you with the timeframe that it will take you to pay the balance off if you only make the minimum monthly payments.
Why is closing an old credit card account often detrimental to your credit score?
It lower your available tradeline and lowers your credit age.
What is a hold on a check and why do banks placed them?
Holds are placed on accounts due to large dollar amounts being deposited without recourse.
Why might you choose a credit union over a bank?
It is a matter of preference, both are backed by insurance but credit unions are privately owner and banks typically are not.
What is the difference between statement balance and current balance?
Statement balance is the date at the close of your statement and the current balance is what is charged and post YTD.
What is a grace period on a credit card?
The time between your statement cut off and the date the payment is due.
How does using 30% of your credit limit affect your credit score?
It raises your credit utilization rate.