understanding credit
How many years will it take Jorge to pay off the loan?
5 years
Vera has a June credit card balance of $476.09. Her payment due date is June 27th, with a grace period of 5 days. If her payment is late, the credit card company charges a $30 late fee. Vera wants to pay the full amount to have a zero balance. How much should she pay if her online payment is processed on July 6th?
506.09
If Mr. Kirov continues to make monthly payments of $100 and does not make any new purchases, how many more payments will he need to make before the balance is 0?
6 payments
Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reasons for a positive credit history? Check all that apply.
A good credit history results in lower interest rates. A good credit history makes borrowing easier.
Sienna has a car loan with an annual interest rate of 4.8%. She will make the same monthly payment for 48 months, after which the loan will be paid back. Diego says that Sienna's loan is an example of closed-end credit while Sienna says it is an example of open-end credit. Which statement about the loan is true?
Diego is correct because the loan has to be paid in full by a specific date.
Aria has a credit card that gives a 5% discount on every purchase and free shipping when used online. The annual percentage rate on the credit card is 18%. Aria wants to buy a doghouse that costs $580. Which statement about the cost of the doghouse is true?
If Aria uses the credit card and pays the full balance during the billing cycle, she will spend $29.00 less than paying cash for the doghouse
Kanya has a credit card that gives a 6% discount on every purchase and free shipping when used online. The annual percentage rate on the credit card is 12%. Kanya wants to buy a laptop that costs $420. Which statement about the cost of the laptop is true?
If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $25.20 less than paying cash for the laptop.
Kendrick is planning to buy a house. Which explains why he should establish a positive credit history before buying the house?
It will be easier for him to get a loan to buy the house.
Kenya used a debit card to buy a pair of jeans. Which statement is true about her method of payment?
Kenya used money directly from her bank account to buy the jeans.
Lois bought clothing at a store. She did not have enough in her bank account to pay for the purchase. After receiving the bill and paying off the balance, she realized that she paid $9.69 in interest. Which statement is true about her method of payment?
Lois used a credit card to make the purchase.
Pete is trying to get a loan. He has a credit score of 480. How is Pete's lender likely to view this credit score?
Pete is irresponsible and will not pay the loan back on time.
Simon used a credit card to buy a skateboard. Which statement is true about his method of payment?
Simon will receive the bill later.
What is easy-access credit?
a loan given for a short period of time that is not dependent on credit history
This year, Mr. Thomas has a higher credit score than he did last year. Which of the following should Mr. Thomas expect with the improved score? Check all that apply.
an easier time getting a car loan an easier time renting an apartment
Which is a desirable characteristic to look for when choosing a credit card?
no annual fee
Quincy listed information from his credit report. Which list could Quincy have written?
previous address, current address, bankruptcy, car loan payment history
Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report?
to determine if he has a history of good credit
Tyler is using a credit card to purchase a television. Which of the following should Tyler expect? Check all that apply.
to receive a bill at a later date to be able to pay for it over time to pay interest if he does not pay in full by a certain date
