Questions from Personal Finance

Q: The $2,000 credit card balance that the Sampsons are

The $2,000 credit card balance that the Sampsons are carrying, on which they are currently making the minimum payment due, has a credit limit of $10,000. The Sampsons have just received a letter from...

Q: What are three advantages of using a credit card? Can you

What are three advantages of using a credit card? Can you think of any disadvantages?

Q: What information will you need to supply when applying for credit?

What information will you need to supply when applying for credit? What kinds of attributes are creditors looking for? Do you need to have all these attributes to get credit?

Q: Describe the differences between a credit card like MasterCard or Visa and

Describe the differences between a credit card like MasterCard or Visa and a retail (or proprietary) card. How do credit and retail cards generate revenue? What is the biggest disadvantage of a propri...

Q: Discuss how credit cards offer incentives to use the cards. How

Discuss how credit cards offer incentives to use the cards. How else might credit card companies reward cardholders with excellent credit ratings?

Q: What is a grace period? How can you use it to

What is a grace period? How can you use it to your advantage?

Q: What is a cash advance? How are they commonly obtained?

What is a cash advance? How are they commonly obtained? Discuss interest rates and grace periods with regard to cash advances.

Q: How does the interest rate affect your credit payments? What is

How does the interest rate affect your credit payments? What is meant by simple interest? What is the annual percentage rate (APR), and when is it used?

Q: List some items that appear on the credit card statement. What

List some items that appear on the credit card statement. What accounts for the difference between your previous balance and your new balance?

Q: What should you consider when comparing credit cards?

What should you consider when comparing credit cards?