Sarah will turn 18 next month and she plans to apply for a credit card which statement is true?

Sarah can have one if she has a cosigner or proof of income

Paying the minimum payment on a credit card every month will:

Make the final amount paid higher than the initial amount.

Which is a general rule when dealing with credit reports to minimize identity theft ?

Check credit report at least once a year

To decrease risk of fraudulent use of credit cards which strategy would be the MOST effective

Signing the back of card with "please see picture ID"

How can Tyler legally avoid paying interest when using his credit card?

Pay the balance in full every month before the due date

Which is an act of identity theft?

Wrongfully using someones personal identification

Megan's credit card statement shows that she is paying a penalty APR. Which best describes why?

She missed two payments while she was on a trip

Which is NOT something an identity thief might realistically do with your information

take a college admissions exam in your name

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PF6.03 - 6.04 Credit Cards and Protection

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#Personal Finance

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Questions 11

Answers

1
Sarah will turn 18 next month and she plans to apply for a credit card which statement is true?
Sarah can have one if she has a cosigner or proof of income
Sarah cannot obtain a credit card until she is 21
She can have one by filling out a application after her Bday
Sarah has to use a special application since she is under 25
2
Paying the minimum payment on a credit card every month will:
Make the final amount paid higher than the initial amount.
allow the cardholder to avoid paying any interest.
Help create a plan for paying off a card in decent time.
Pay a large percentage of the total balance owed each month.
3
What personal information is least likely to be used by scammers
Bank account numbers
Credit card numbers
Phone numbers
Drivers license numbers
4
Which is a general rule when dealing with credit reports to minimize identity theft ?
Check credit report at least once a year
Report mistakes to only one credit reporting agency
Keep credit reports in a easy accessible place
Wait 60 days before disputing wrong info on credit report
5
To decrease risk of fraudulent use of credit cards which strategy would be the MOST effective
give account numbers over the internet rather than phone
use credit card for every purchase so she only has one bill
carrying all cards in wallet so they don't get lost
Signing the back of card with "please see picture ID"
6
Which action will not make an individual vulnerable to identity theft ?
Responding to an email from ones depository institution
Using a computer without updated spyware protection
Throwing mail in the garbage
Paying cash for a movie ticket
7
How can Tyler legally avoid paying interest when using his credit card?
Limit the use of his credit card to balance transfers only
He needs to understand he is required to pay interest
Pay the balance in full every month before the due date
Pay the minimum balance every month
8
Which is an act of identity theft?
Having the same name as another person
Taking the identity of someone for a costume
Wrongfully using someones personal identification
Receiving permission to use parents card for school clothes
9
Megan's credit card statement shows that she is paying a penalty APR. Which best describes why?
Her credit card payment has been paid in full for 6 months
She bought a computer and it went over her credit limit
she had a low introductory rate for a year and now it's high
She missed two payments while she was on a trip
10
Ashley plans to do some shopping online. what is a safety tip when shopping online?
use a debit card
use a credit card
Shred all sales receipts as soon as the item is received
Black out the account numbers on the bill before returning
11
Which is NOT something an identity thief might realistically do with your information
use your name during an arrest
Rent an apartment under your name
make purchases with your credit card
take a college admissions exam in your name

PF6.03 - 6.04 Credit Cards and Protection Flashcards | StudBud