Budget/ Credit review

if you use a credit card, what is the most important thing to do every month

pay it off in full

what is a secured credit card

card attached to a saving account

annual fee (credit card)

what is the cost of having it

APR (credit card)

interest rate

penalty fees & rates (credit card)

extra costs

grace period (credit card)

how much time you have to make your payment

if you are going to use credit cards how many should you have

2-3

what is zero liability with a credit card

you are not responsible for unauthorized use

when budgeting one method is to us 50/30/20, what do the numbers represent

50: needs 30: wants 20: invest

what is a credit score and what is the range

measures how you made payments in the past, 300-850

is credit a right that you have or a privilege that you need to earn

privilege

the 5 main things that make up your credit score are new credit, payment history, credit mix, how much you own, length of credit. Which 2 are most important

payment history and how much you own

what is you credit score so important

can save you money and give you the ability to borrow money

T or F: a budget is a plan for your money

true

T or F: a bank has the responsibility of detecting mistakes in your monthly statements

false

T or F: a blank endorsement is the safest type of endorsement

false

T or F: it is okay to use a store credit card for one purchase and then cancel it

false

T or F: the range of credit is 200-900

false

T or F: 700 is considered a good credit score

true

the most important thing about a credit card is to pay your balance in full each month

true

it will not affect you credit score if you have 12 credit cards

false

creditors do not care how long you have been in your place of residence

false

everyone should have a credit card

false