Credit Cards
Why would credit card companies prefer that their cardholders make the minimum monthly payment every month rather than paying their total balance in full?
A) This is required by federal law for tax purposes
B) This allows the card holder to pay their bill quickly and close the card when they’re ready
C) This enables the credit card company to make more money
D) This helps cardholders develop financial independence
C) This enables the credit card company to make more money
The three major credit reporting agencies.
Experian, Equifax, and TransUnion
A loan with collateral is known as this type of loan.
Secured Loan
When someone takes your private information for financial gain, it is called this.
Identity Theft
Who in this room is also part of the band?
Roean & Hannah
What happens if you only pay the minimum due on your credit card?
A. You avoid paying interest
B. You increase the total time and cost to pay off the debt
C. Your credit limit decreases immediately
D. Your credit score automatically increases
B. You increase the total time and cost to pay off the debt
Your credit utilization percentage should be at or below this level to maintain a good credit score.
30%
These high-interest loans often target people with low credit scores and incomes, creating cycles of debt.
(up to 400%)!
Payday Loans
This law requires lenders to disclose the true cost of credit transactions.
Truth in Lending Act
What is Trent's favorite soda?
(Will accept Mountain Dew as an answer)
Reading through a credit card’s Schumer Box, you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?
A) When given a range of APRs like this, you can assume most cardholders pay the lowest rate liste
B) Your APR will be within that range, depending on the strength of your credit history
C) In this case, you want the highest APR in the range because you’ll earn more
D) The APR on credit cards is usually fixed, so it won't be adjusted as long as you are a cardholder
B) Your APR will be within that range, depending on the strength of your credit history
Which of the following has a POSITIVE impact on a person’s credit score?
A) A bank foreclosing on the person’s home
B) A person frequently paying bills later than the due date
C) Filing for personal bankruptcy
D) Having a good record of making payments on a loan
B) A person frequently paying bills later than the due date
Credit qualification is NOT based on…
A) Income
B) Education
C) Financial Position
D) Collateral
B) Education
If you file for Chapter 7 bankruptcy, your debts are paid off by doing this.
Selling your assets
Where does Tristan work?
Chipotle
What should you do if your credit card is lost or stolen?
A. Wait a few days to see if it turns up
B. Contact the police first
C. Call the credit card company immediately
D. Open a new account with a different company
C) Call the credit card company immediately
Which of the following factors has the greatest impact on your credit score?
A. Payment history
B. Credit mix
C. New credit inquiries
D. Length of credit history
A. Payment history
What benefits do you receive by taking out a loan with a cosigner?
A) You don’t get penalized for late payments
B) You get a discount on future loans after this one is paid off
C) You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit
D) You automatically get the same credit score as the cosigner once the loan is paid off
C) You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit
17. Which of these represents a potential consequence of neglecting to pay your federal student loans?
A) Wages or tax refunds can be garnished
B) Passport revocation
C) Driver’s license suspension
D) Termination from your job
A) Wages or tax refunds can be garnished
What is one of Maddy's sayings/catchphrases?
"What the Sig?!"
(will accept another answer if Maddy approves)
Credit cardholders who opted-in to allowing purchases to go over-the-credit limit will be charged…
A) A fee on the credit card bill for the month the limit was exceeded
B) No fee on the credit card bill for transactions over the limit
C) A fee based on a percentage of the amount that was over the limit
D) A monthly fee for having the privilege of going over the limit
A) A fee on the credit card bill for the month the limit was exceeded
This is how long a Chapter 7 bankruptcy remains on your credit report.
10 Years
This act requires lenders to disclose the true costs of credit transactions and prohibits the use of violence to collect debt.
Truth in Lending Act
What score do you need on the W!SE test to pass?
33 out of 50 questions
(66%)
What school did Connor transfer from?
Dominion Ridge