UGBA 135
What is a credit hold on your account? - ✔️✔️when a hotel or car rental charges more
money just incase damage is done-if you go over limit you worry about over draft fees, if
hold is executed if will count against credit-don't have to tell how much hold is-no
maximum interest rate, virtually eliminated teaser rates-an unused credit hold may not
create an over limit charge unless hold is executed
According to the CC law, can you get cash out of an ATM with your CC and not get
charged for a fee? - ✔️✔️Never use a credit card in an ATM except for an emergency
because usually you will get charged a 3-4% fee
What are prepaid cards and what kind of fees do they charge? - ✔️✔️Fastest growing
segment of the plastic money industry
Not linked to a bank account
Offered by banks and nonbanks
Can be quite questionable/lucrative with fees (the fees are meant for profitable gain)
What is the highest credit score you can get on a FICO - ✔️✔️850 is the highest score,
and the lowest is 300
When is the best time to establish good credit? - ✔️✔️When you don't need it
Know what a debt-to-credit ratio is - ✔️✔️The amount of debt you currently have
divided by the amount of credit you have available
Stay below a 50% debt-to-credit ratio on each credit card
30% ratio is best for top scores
If you think you have been a victim of CC theft, what is the first thing that you do? -
✔️✔️Immediately contact the 3 major credit bureaus and put "fraud alert" on your
account
Close all accounts as soon as possible
If you have a balance in your account and you pay more than the minimum amount due,
what is your excess payment applied to? - ✔️✔️The payments must be first applied to
the balance with the highest interest rate, which benefits the consumer
What is the max. rate of interest they can charge you on a CC account? - ✔️✔️No limit
Who is allowed to check your credit scores? - ✔️✔️Anyone with approval
What is the website (the one federally mandated website) for a free credit report? -
✔️✔️www.annualcreditreport.com
, Is a credit card a "secured" or "unsecured" line of credit? - ✔️✔️A credit card is an
unsecured line of credit because it is not guaranteed by an asset
Unsecured credit comes with higher interest rates
A secured line of credit is guaranteed by an asset, such as a home or car
How many FICO scores does a person usually have? - ✔️✔️One from each of the
three major credit bureaus
Close to one another, but it's because they have different information
If you cancel an inactive credit card, does your credit score go up or down? -
✔️✔️Down, because it hurts your credit length history (which amounts to 15% of your
credit score) becomes more difficult to qualify for a credit card
With a CC, what is the grace period? - ✔️✔️A period in the billing cycle during which
no penalty is due as long as payment is received on time by the lender. Lasts 21 days
Do retail charge cards charge lower or higher interest rates than a CC? - ✔️✔️Higher
interest rates
If you increase your credit card limit, you increase your credit score - ✔️✔️Yes
How often with CC balances is the interest calculated? - ✔️✔️Daily
What two factors make up the interest rate on a CC? - ✔️✔️Go to rate
Rate they give you based on your history
Variable rate
Cost of money
How often should you balance and review your bank and CC statement? -
✔️✔️Everytime you get a statement (every month).
If you carry a CC balance, they require you to pay interest on penalties and fees -
✔️✔️...
What is an overdraft fee? - ✔️✔️If you take out more money than you have credit for,
then you get charged an overdraft fee
Most credit cards have an unconditional guarantee on your purchases - ✔️✔️...
Are CC statements required to show the number of statements of the balance just using
the minimum payment? - ✔️✔️Yes.
What is a credit hold on your account? - ✔️✔️when a hotel or car rental charges more
money just incase damage is done-if you go over limit you worry about over draft fees, if
hold is executed if will count against credit-don't have to tell how much hold is-no
maximum interest rate, virtually eliminated teaser rates-an unused credit hold may not
create an over limit charge unless hold is executed
According to the CC law, can you get cash out of an ATM with your CC and not get
charged for a fee? - ✔️✔️Never use a credit card in an ATM except for an emergency
because usually you will get charged a 3-4% fee
What are prepaid cards and what kind of fees do they charge? - ✔️✔️Fastest growing
segment of the plastic money industry
Not linked to a bank account
Offered by banks and nonbanks
Can be quite questionable/lucrative with fees (the fees are meant for profitable gain)
What is the highest credit score you can get on a FICO - ✔️✔️850 is the highest score,
and the lowest is 300
When is the best time to establish good credit? - ✔️✔️When you don't need it
Know what a debt-to-credit ratio is - ✔️✔️The amount of debt you currently have
divided by the amount of credit you have available
Stay below a 50% debt-to-credit ratio on each credit card
30% ratio is best for top scores
If you think you have been a victim of CC theft, what is the first thing that you do? -
✔️✔️Immediately contact the 3 major credit bureaus and put "fraud alert" on your
account
Close all accounts as soon as possible
If you have a balance in your account and you pay more than the minimum amount due,
what is your excess payment applied to? - ✔️✔️The payments must be first applied to
the balance with the highest interest rate, which benefits the consumer
What is the max. rate of interest they can charge you on a CC account? - ✔️✔️No limit
Who is allowed to check your credit scores? - ✔️✔️Anyone with approval
What is the website (the one federally mandated website) for a free credit report? -
✔️✔️www.annualcreditreport.com
, Is a credit card a "secured" or "unsecured" line of credit? - ✔️✔️A credit card is an
unsecured line of credit because it is not guaranteed by an asset
Unsecured credit comes with higher interest rates
A secured line of credit is guaranteed by an asset, such as a home or car
How many FICO scores does a person usually have? - ✔️✔️One from each of the
three major credit bureaus
Close to one another, but it's because they have different information
If you cancel an inactive credit card, does your credit score go up or down? -
✔️✔️Down, because it hurts your credit length history (which amounts to 15% of your
credit score) becomes more difficult to qualify for a credit card
With a CC, what is the grace period? - ✔️✔️A period in the billing cycle during which
no penalty is due as long as payment is received on time by the lender. Lasts 21 days
Do retail charge cards charge lower or higher interest rates than a CC? - ✔️✔️Higher
interest rates
If you increase your credit card limit, you increase your credit score - ✔️✔️Yes
How often with CC balances is the interest calculated? - ✔️✔️Daily
What two factors make up the interest rate on a CC? - ✔️✔️Go to rate
Rate they give you based on your history
Variable rate
Cost of money
How often should you balance and review your bank and CC statement? -
✔️✔️Everytime you get a statement (every month).
If you carry a CC balance, they require you to pay interest on penalties and fees -
✔️✔️...
What is an overdraft fee? - ✔️✔️If you take out more money than you have credit for,
then you get charged an overdraft fee
Most credit cards have an unconditional guarantee on your purchases - ✔️✔️...
Are CC statements required to show the number of statements of the balance just using
the minimum payment? - ✔️✔️Yes.
