What percent should your debt to income ratio not exceed.
20%
100
What is Identity Theft.
Crime in which someone wrongfully obtains and uses another persons personal data in some way that involves fraud or deception typically for economic gain.
100
Why should you want to have a credit card?
Necessary for Emergencies
Making Hotel Reservations
Renting A Car
Develop A Credit History
Convenience While Shopping
Enjoy Goods and Services Now, Pay Later
Take Advantage of Rewards
100
What is a credit card?
A plastic card that holds pre-approved credit which can be used for the purchase of items now and payment of them later.
100
True/False-it is good to be a co-signer on a credit card
false
200
What is chapter 7 in bankruptcy
Chapter 7 is when you debt is wiped out, there is complete liquidation, and you get a clean slate.
200
What is one of the common ways to commit fraud?
Dumpster diving, spam/phishing, or shoulder surfing
200
Why should you not want a credit card?
Credit costs money
Its easy to over spend
It it ties up future income
It can destroy your credit rating
200
True/False
Paying the minimum payment is the best way to pay for credit card debt
FALSE
200
What are some do's and dont's when having a credit card?
do's
paying the amount charged to a credit card in full everymonth
dont make late payments
do pay credit card payments ontime
dont only may the minimum payment due
do keep track of all charges by keeping receipts
dont go over the cards credit limit
etc..
300
What is Collateral
Collateral is what the banks can take back if you dont pay.
300
How do you avoid becoming a victim of Identity Theft?
Be stingy about giving out your personal info
Check your financial information regularly
Ask periodically for a copy of your credit report
Maintain careful records
300
What are the four major credit cards?
Visa
MasterCard
Discover
American Express
300
What can a credit card pay for?
virtually anything
goods
services
300
What are some advantages of using a credit card?
convenient
useful for emergencies
often required to hold a reservation
purchase expensive items
possibility of reveiving bonuses, such as frequent flyer miles anc cash rebates
400
What is the differance between open end credit and closed end credit.
Open End Credit has no set terms, payments, or payment dates, it is variable. Closed End Credit has set terms, payments, and payment dates, it is fixed.
400
What should you do if you become a victim of Identity Theft?
Contact
Federal Trade Commission
Post Office
Social Security
Internal Revanue Service
Contact the three credit bureaues
Police
400
What are the 5 C's of credit?
character
capacity
capital
collateral
credit history
400
What type of loan is a credit card?
short term loan
400
What are some disadvantages of using a credit card?
paying interest if balance is kept on card
additional fees may apply if card is not used properly
tempting to overspend
responsible for lost/stolen cards
risk of identity theft
500
What does APR stand for and what is it?
APR - Anual Percentage Rate, it is the interest rate over the course of a year.
500
What does SCAM stand for?
S- Stingy
C- Check
A- Ask
M-Maintain
500
What should you watch out for when having a credit card.
(nothing to do with identity theft)
double cyle billing
high limit cards
late payment fees
500
When a card holder only pays the minimum balance every month what will they gain a lot of?
lots of interest and make slow progrerss toward paying off what is owed on the credit card
500
Who are usually the people to steal other peoples identities?
70% .. who?
up to 70% of all identity theft cases are inside a job-by a coworker or an employee of a buisness that you patronize