I need help understanding credit. Are my answers correct?

1.Which of the following cards require full repayment when you receive the monthly
statement?
1) Debit/Check card
2) Charge card
3) Credit card
4) Cash card
5) None of the above
answer:5

2.In almost all cases, lenders will charge you for the use of credit (borrowed money). What factors affect the final cost?
1) The interest rate/APR
2) The amount of down payment, if any
3) The length of time you take to repay
4) Additional charges, such as late payment, over-the-limit and annual fees
5) All of the above
answer: 5

3.You purchase worth of clothes using your credit card. When you receive the credit card bill, you immediately pay the entire amount. The credit card company does not charge interest if the bill is paid in full within 30 days. There is no annual fee for the credit card. For this purchase, what is your credit cost?
1)
2) 18% APR
3) {content}
4) None of the above
answer: 3

4.If you think your credit file contains incorrect information, you can? 1) Ask the credit reporting agency for a copy of your credit file
2) Add your own explanation to certain information in your file that you disagree with
3) Have the incorrect information deleted from your credit file
4) A and C only
5) A, B, and C
answer: 4

5.By federal law, known as the Fair Credit Reporting Act (FCRA), Equifax can only release all or part of a credit file if there are "permissible purposes." Which of the following "permissible purposes" allows Equifax to release a copy of your credit file?
1) A request from a consumer for his or her own credit file
2) A prospective employer conducting a background check
3) An insurance company wishing to underwrite an insurance application
4) All of the above
answer:2

6.Generally speaking, the longer the term of a loan, the higher the cost of credit.
1) True
2) False
answer: 1

7.Installment loans are usually paid?
1) in fixed payments every month until the loan is repaid
2) in variable monthly payments which you, the borrower, can establish
3) in variable monthly payments which are established by the lender
4) in one lump sum at the end of a specified period of time
answer: 3

Related Credit Card Sites

• How do i write to the credit monitoring companies to ask to have something removed from my credit report? | Free Credit Report, Credit Score and FICO Information
• The Fair Credit Reporting Act Guards Potential Home Buyers From Errors
• What are the permissible purposes to access a credit report? | Krumbein Consumer Legal Services, Inc.