Money Situations
What information do you need to apply for a credit card?
Name, Address, number, social security number, and yearly income
What credit card fee hurts your credit score?
Late Payment Fee
What is the credit score range?
300 to 800
What is the best way to improve your credit score?
Paying more than the minimum payments each month
Definition: The opportunity to borrow money or to receive goods or services in return for a promise to pay later.
Credit
Consumers shopping with a credit card spend up to 33% more than if they shopped with cash only. True or False?
True
Is it better to pay your credit card on the due date or statement date?
Due date
What is a GOOD standing credit score?
670
True or false: Checking your credit report will hurt your credit score
False
Definition: The act of signing for another person's debt. By signing for another person's debt, the signer is legally obligated to make payment on the other persons behalf if they default
Co-Signor
I need to build credit fast, what’s the fastest way to build credit?
Piggybacking
What is the most common type of credit card for students?
Discover It student credit card
Canceling your credit card can raise your score, True or False?
False
How often is your credit score updated?
Once a month (after the first six months of credit history)
Definition:A higher interest rate triggered by being late with or missing a credit card payment
Penalty Annual Percentage (APR)
If your credit card balance is $3500 on your credit card, what would be the typical minimum monthly payment?
$70 (usually 2% of your balance)
What are some incentives that some credit cards attract offer?
Airline miles, hotel room rentals, gift certificates to major retailers and cash back on purchases
How many credit scores does a person have?
Three
Experian, Equifax, TransUnion
What is the most common type of credit?
Revolving Credit
Definition:An open-ended, revolving loan, in which the borrower may access money up to a certain limit, pay it back and borrow it again.
Line of Credit (LOC)
You paid your minimum monthly payment for this month, but not the entire balance, what will happen to your remaining balance?
It will begin to accumulate interest
How much should you spend/ borrow on a credit card every month? (hint: it's a percentage)
10%-30%
Name 3 out of the 5 factors that your credit score is based on.
Payment History, Credit Utilization, Length of Credit History, New Credit, and Diversification
True or false: You are entitled to a free credit report every 6 months from the three nationwide credit reporting companies
False, every 12 months
Definition: Federal law requires lenders to tell you about the costs, terms, and conditions at the time they offer you a loan or credit card.
Truth in Lending Act