Everfi Module 3 Payments Questions and Answers 100% Pass

Everfi Module 3 Payments Questions and Answers 100% Pass Paying more than the minimum payment can help you get out of debt faster If you're already in debt, try to avoid missing a credit card payment, as it can lead to additional late fees and even raise your APR The average minimum payment only equals 2 to 3% of your total debt, so making only the minimum payments on your credit card bill may keep you in debt for a long time pay more than the minimum When choosing a credit card, look for annual fees, changes to your APR, and other finance charges Credit card rewards programs can be appealing, but be sure you understand how they work beforehand If you charge something to your credit card and don't pay off the full balance before the next billing cycle, you'll be charged interest Credit cards typically charge high APRs You can avoid paying high interest rates by paying off your credit card in full each billing cycle Credit cards allow you to build your credit history and may protect you against fraudulent charges, but also come with high interest rates on any outstanding balance Debit cards can help you stick to a budget, but beware of spending more money than you have in your account. This can lead to overdraft fees and interest payments Unlike credit cards, debit cards will not build your credit or provide as much protection from fraudulent charges With certain paper payment methods - like cash, cashier's checks, and money orders - you are providing the money for a purchase upfront With debit cards and checks, however, the money for a purchase comes directly out of your checking account When you use a credit card to make a purchase, you're getting a loan from a credit card company With debit cards (sometimes called check cards), the money is debited directly from your checking account Which of the following payment types require you to pay upfront? Money order, Cashier's check, Pre-paid card Which of the following is true? Checks and Debit Cards both withdraw money directly from a bank account Which of the following statements comparing debit cards to credit cards is TRUE? Debit cards allow you to draw funds directly from your checking account. Which of the following is NOT true of credit cards? They are the best payment type to use when trying to stick to a budget. Which payment method typically charges the highest interest rates? Payday loans Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month? Annual Percentage Rate Which payment type can help you stick to a budget? Debit cards Which of the follow will happen if you miss a monthly credit card payment? You will be charged a late fee If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for? Low APR What is a credit limit? The maximum amount you can charge each billing cycle. The annual percentage rate on a credit card determines _______. the amount of interest you are charged on credit card purchases What is the amount of money you still owe to their credit card company called? Credit Card Balance Making a credit card minimum payment: Means you are paying a small portion of your total credit card debt Which of the following is true of both paying with a check and paying with a debit card? When used, both take money directly out of a bank account. Which of the following can increase your credit cards APR? Missing a credit card payment The amount of money you can charge to a credit card is called: Credit limit hat is a credit card balance? The amount of money you still owe to the credit card company Which of the following are true if you pay only the minimum amount each month towards your credit card bill? You will be charged interest on your remaining balance. Your Annual Percentage Rate will increase. Which of the following is NOT a common credit card fee? Minimum payment fee Which payment type is best if you are trying to stick to a budget? Debit Card