Which action could help improve your credit history?

Always pay your credit card bill on time.

What is the correct definition for the grace period?

The time between when you make a purchase and the date when interest starts

What statement is correct about grace periods?

It is the time between making a purchase and when interest charges you

Which of these are the long-term impacts of having a good credit history?

It's easier to pay for major purchases like cars, houses, and education.

Which statement is correct about Annual Percentage Rate (APR)?

It is the interest rate you pay on balances you carry from month to month.

Why is it important to find a credit card with a lower APR?

A lower APR means you pay less in interest.

Which is the best strategy for paying your credit card bill?

Pay the entire balance every month.

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EverFi - Acquiring Wealth

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Questions 10

Answers

1
Why do lending and credit card companies use a borrower's Social Security number when opening an account?
To withdraw taxes
To assign an interest rate
To ensure borrowers are US citizens
To protect against fraud
2
Which action could help improve your credit history?
Leave credit card bills outstanding
Make a major purchase that you can't afford right now
Only get a debit card and avoid credit cards.
Always pay your credit card bill on time.
3
What is the correct definition for the grace period?
The time between when you make a purchase and the date when interest starts
The amount of time you have to make late payments
The amount of time you have to pay your secured deposit
The amount you pay for your card each year
4
What statement is correct about grace periods?
It is the time between making a purchase and when interest charges you
Every credit card has a grace period.
A short grace period is better for the borrower
You are charged interest during the grace period.
5
Which of these are the long-term impacts of having a good credit history?
It gives you freedom to shop around for the best deal on tech.
It prevents you from spending money on unnecessary things.
It's easier to pay for major purchases like cars, houses, and education.
It lets you buy the things you want like clothes or cellphones.
6
Which statement is correct about Annual Percentage Rate (APR)?
It has nothing to do with how much interest you pay.
It stands for Amortized Percentage Rate.
It is the interest rate you pay on balances you carry from month to month.
It is better for the borrower if the rate is higher
7
Which type of card impacts your credit history?
Debit card
Driver's License
State ID Card
Student credit card
8
What is a reason to pay more than the minimum payment due on your credit statement each month?
It hurts your creditworthiness.
You save money on interest.
Your credit utilization rate stays the same.
It takes more time to pay off a balance.
9
Why is it important to find a credit card with a lower APR?
A lower APR means you have more time to pay off your balance.
A lower APR gives you a better credit history.
A lower APR impacts your grace period.
A lower APR means you pay less in interest.
10
Which is the best strategy for paying your credit card bill?
Pay half the balance every month.
Pay the minimum payment every month.
Make no monthly payments at all.
Pay the entire balance every month.

EverFi - Acquiring Wealth Flashcards | StudBud