Level 2

1. List two of the positive and negative aspects to credit card use

• 1P- Convenience: Allows users to make purchases online in- store without needing cash.

• 2P- Credit Score: Helps build credit score and makes it easier to obtain loans + credit in the future.

• 1N- Overspending: Temps users to waste money, leading to poor financial decisions if not careful. 

• 2N- Fees: Credit cards come with late payment fees that add up quickly.

2. Explain one positive and one negative aspect to loan use

P- access to funds to prevent financial bridge gaps.

N-  loans can eventually lead to debt, affecting finances and credit scores.

3. Explain:

• Truth in Lending Act- protects consumers from inaccurate and unfair credit practices.

• Fair Debt Collection Practices Act- eliminates abusive debt collection practices by debt collectors.

• Fair Credit Reporting Act-  protects information collected by customer reporting agencies 

4. Identify two ways to monitor your credit score

1-  check your credit report regularly to find errors (only once a year)

2- avoid sketchy inquiries to prevent getting scammed.