| Statement Math | Credit Scores | Credit Reports | Getting Out From Under Credit Card Debt | Vocabulary |
| 10 | 10 | 10 | 10 | 10 |
| 20 | 20 | 20 | 20 | 20 |
| 30 | 30 | 30 | 30 | 30 |
| 40 | 40 | 40 | 40 | 40 |
| 50 | 50 | 50 | 50 | 50 |
| Final Question | ||||
The APR on your VISA card is 14.99 percent. What is the monthly interest rate, expressed as a decimal?
The APR on your VISA card is 14.99 percent. What is the monthly interest rate, expressed as a decimal?
0.01249
A credit card with a 14.99 percent APR has a balance of $1,928.54. If a payment of $75.00 is made, how much will the finance charge be?
A credit card with a 14.99 percent APR has a balance of $1,928.54. If a payment of $75.00 is made, how much will the finance charge be?
$23.15
A credit card with a 17.99 percent APR has a balance of $2,468.10. If a payment of $2,468.10 is made, how much will the finance charge be?
A credit card with a 17.99 percent APR has a balance of $2,468.10. If a payment of $2,468.10 is made, how much will the finance charge be?
$0.00
A credit card with a 13.50 percent APR has a balance of $2,111.22. The most recent statement lists a minimum payment of just $45.00. If that minimum payment is made, what percentage of the payment will be lost to interest (a.k.a. the finance charge)?
A credit card with a 13.50 percent APR has a balance of $2,111.22. The most recent statement lists a minimum payment of just $45.00. If that minimum payment is made, what percentage of the payment will be lost to interest (a.k.a. the finance charge)?
About 52 percent
A credit card with a 17.99 percent APR has a balance of $2,468.10. If a payment of $100 is made, what should the next statement starting balance be?
A credit card with a 17.99 percent APR has a balance of $2,468.10. If a payment of $100 is made, what should the next statement starting balance be?
$2403.60
Your FICO score is calculated based on 5 components. Which component carries the most weight in the FICO score calculation, and at what percent?
Your FICO score is calculated based on 5 components. Which component carries the most weight in the FICO score calculation, and at what percent?
History of Payments at 35 percent
True or False: Closing a credit card account with a $0.00 balance could negatively impact your credit score.
True or False: Closing a credit card account with a $0.00 balance could negatively impact your credit score.
TRUE. Your overall credit utilization could increase when the credit limit from the closed account is eliminated.
What is the FICO score range?
What is the FICO score range?
300 to 850
True or False: All Americans are entitled to THREE free credit scores per year.
True or False: All Americans are entitled to THREE free credit scores per year.
FALSE. Every American is entitled to one free credit report per year from each of the three credit reporting agencies, but the FICO score is not included in those free reports.
You have two credit cards: A VISA with a balance of $2,250 and a credit limit of $5,000 and a MASTERCARD with a balance of $1,500 and a credit limit of $2,500. What is your overall credit utilization?
You have two credit cards: A VISA with a balance of $2,250 and a credit limit of $5,000 and a MASTERCARD with a balance of $1,500 and a credit limit of $2,500. What is your overall credit utilization?
50 percent
True or False: All Americans are entitled to THREE free credit reports per year.
True or False: All Americans are entitled to THREE free credit reports per year.
TRUE. Every American is entitled to one free credit report per year from each of the three credit reporting agencies.
What are the three credit reporting agencies that actively manage your credit report?
What are the three credit reporting agencies that actively manage your credit report?
Experian, Equifax and Transunion
True or False: Student Loans are a way to establish credit history without any need for pre-approval or a co-signer.
True or False: Student Loans are a way to establish credit history without any need for pre-approval or a co-signer.
TRUE. For many Americans, student loans are among the earliest items listed on their credit report.
Fill in the blank: A late payment can stay on your credit report for up to ________ years.
Fill in the blank: A late payment can stay on your credit report for up to ________ years.
SEVEN. The negative impact that a late payment can have on a person's credit score can last for up to two years, but the record of a late payment remains on the report for up to seven years!
What is the difference between a SOFT credit inquiry and a HARD credit inquiry?
What is the difference between a SOFT credit inquiry and a HARD credit inquiry?
A soft inquiry is when your credit report is being accessed purely for informational purposes, and does NOT impact your credit score. A hard inquiry occurs when you are actively applying for new credit, and your credit score IS impacted.
Fill in the blank: In order to stop adding to the balance on a credit card, you must ________.
Fill in the blank: In order to stop adding to the balance on a credit card, you must ________.
STOP making purchases using the card! Write out a budget and stick to it... and put that card in the freezer!
A balance transfer credit card has a transfer fee of 4.00 percent. If you transfer a balance of $4,895 from an old card, what will your starting balance be on the new card when you receive the first statement?
A balance transfer credit card has a transfer fee of 4.00 percent. If you transfer a balance of $4,895 from an old card, what will your starting balance be on the new card when you receive the first statement?
The starting balance will be $5,090.80 after a balance transfer fee of $195.80 is applied.
True or False: Making MORE than the minimum payment each month will save you both time and money when digging yourself out from under credit card debt.
True or False: Making MORE than the minimum payment each month will save you both time and money when digging yourself out from under credit card debt.
TRUE. Finance charges are calculated based on the amount of the balance that you leave UNPAID each billing cycle.
True or False: You can negotiate a lower interest rate with your credit issuing bank.
True or False: You can negotiate a lower interest rate with your credit issuing bank.
TRUE: You can ALWAYS pick up the phone and call your issuing bank to ask for a lower APR. They won't want to lose you as a customer to a competitor, especially if you have a history of on-time payments with them.
True or False: Imagine that you have a balance of $3,000 on EACH of your two credit cards, a VISA with an APR of 18.99 percent and a MASTERCARD with an APR of 8.99 percent. You will save on finance charges by paying the MOST toward the VISA while making minimum payments toward the MASTERCARD.
True or False: Imagine that you have a balance of $3,000 on EACH of your two credit cards, a VISA with an APR of 18.99 percent and a MASTERCARD with an APR of 8.99 percent. You will save on finance charges by paying the MOST toward the VISA while making minimum payments toward the MASTERCARD.
TRUE. The high APR on the VISA is going to result in higher finance charges if you don't make the largest possible payments. Of course, you need to be making at least minimum payments toward the MASTERCARD in the meantime to prevent late fees, default interest rates and negative impacts on your credit score!
This document contains the balance on the account, the minimum payment due, the APR, a list of transactions, previous payments and finance charges, etc.
This document contains the balance on the account, the minimum payment due, the APR, a list of transactions, previous payments and finance charges, etc.
Statement
A consumer will find himself in this state if he stops making payments toward his debt.
A consumer will find himself in this state if he stops making payments toward his debt.
Default
A deposit of $1,000 with the issuing bank will allow a consumer a credit limit of $1,000 if they hold this type of card.
A deposit of $1,000 with the issuing bank will allow a consumer a credit limit of $1,000 if they hold this type of card.
Secured Credit Card
The fee associated with leaving part of the balance unpaid for a billing cycle. The APR, along with the unpaid balance amount, determines this fee.
The fee associated with leaving part of the balance unpaid for a billing cycle. The APR, along with the unpaid balance amount, determines this fee.
Finance Charge
A type of credit account that allows the consumer to pay down part, or all, of the balance each billing cycle. As the balance gets paid down, the available credit goes back up.
A type of credit account that allows the consumer to pay down part, or all, of the balance each billing cycle. As the balance gets paid down, the available credit goes back up.
Revolving Credit Account
What is a person who has adequate credit who 'backs up' a person who does not have adequate credit in order to secure a loan or line of credit?
What is a person who has adequate credit who 'backs up' a person who does not have adequate credit in order to secure a loan or line of credit?
A Co-Signer.
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