The Credit Challenge

 

  1. True or False: Applying for as many cards as possible will improve your credit rating.

    1.                 True
    2.                 False

  2. If you are having difficulty paying your bills, what should you do?

    1.                 Open a new account and use that to pay your bills.
    2.                 Inform your creditors and lenders.
    3.                 File for bankruptcy.

  3. What is a "grace period"?

    1.                 The number of days before interest is charged on new purchases
    2.                 Special days each month that the creditor reduces the interest
    3.                 Period of time after your credit card bill due date has passed

  4. What is the average grace period for credit cards?

    1.                 10 days
    2.                 3 months
    3.                 25 days
    4.                 1 week

  5. If you only pay the minimum amount due on your credit card, then you are:

    1.                 Giving your credit card company extra money each month in the form of interest
    2.                 Budgeting your money wisely
    3.                 Building bad credit

  6. To build good credit you should:

    1.                 Make payments promptly as agreed
    2.                 Use credit cards for everything you purchase.
    3.                 Never use credit.

  7. If you are denied credit because of a poor credit report, then the lender must:

    1.                 Inform you of which agency issued the report
    2.                 Try another credit reporting agency
    3.                 Not tell you anything

  8. The average American household with at least one credit card has about how much debt?

    1.                 $1,200
    2.                 $15,000
    3.                 $25,000
    4.                 $9,000

  9. The average undergraduate credit card debt in 2000 was how much?

    1.                 $18,697
    2.                 $2,740
    3.                 $524
    4.                 $8,872

  10. The average number of credit cards undergraduate students had in the year 2000 was?

    1.                 Two
    2.                 Six
    3.                 One
    4.                 Three

  11. In the year 2000, Americans charged how much money on their credit cards?

    1.                 $1 billion
    2.                 $1 trillion
    3.                 $18 billion
    4.                 $2 million