UGBA 135 MT questions with verified solutions 2023/2024

UGBA 135 MTMost important factor determining credit score - correct answer Payment history Highest credit score you can get? - correct answer 850 Best time to establish good credit? - correct answer When you don't need it Debt to credit ratio? - correct answer A credit-to-debt ratio is the amount of available credit you have relative to the amount of debt you carry. Expected credit card theft, whats the first thing you do? - correct answer contact the credit card issuer or bank immediately Balance in your account and pay more than minimum, what is your excess payment applied to? - correct answer applied to the balance with the highest interest rate What is a credit hold on your account? - correct answer When a company won't extend credit to you for various reasons. Usually it is because you are behind on your payables/bills. Essentially, you are not allowed to buy on credit until the hold is off. What's the maximum rate of interest you can be charged on a credit card account? - correct answer There is no federal law that puts a limit on the amount of interest that can be charged on credit cards, however there may be state laws that determine this Who is allowed to check your credit scores? - correct answer employers, landlords, lenders, insurance companies, utility companies What is the federal mandate website for free credit report? - correct answer Is a credit card a secured line of credit or unsecured? - correct answer unsecured How many fico scores does a person usually have? - correct answer 3 If you cancel an inactive credit card does your score go up or down? - correct answer Cancelling a card may increase your debt to credit ratio, which may inturn decrease your credit score, also if possible keep older cards around for longer According to the credit card law, can you get cash out of an atm with your credit card and not get charge a fee? - correct answer no What is the grace period? - correct answer Statements must be mailed at least 21 days before the payment due date and various finance charges, penalties, and fees cannot be charged prior to the 21st day.. Do retail charge cards, charge lower or higher interest rates than a credit card? - correct answer higher What are prepaid cards? what kind of fees do they charge? - correct answer They are cards that are not linked to banks accounts designed to provide the less affluent a secure way to carry money, they may have activation fees, inactivity fees, load fees, minimum amount required, check balance fees, atm fees, and check fees If you increase your credit limit, can you increase your credit score? - correct answer You can because this would lower your debt to credit ratio which would give you a better score how often is interest calculated with credit cards? - correct answer daily what two factors make up the interest rate on a credit card? - correct answer Go to rate of interest (credit history), & variable interest (can change at any time) How often should you review your balance and credit card statements? - correct answer monthly