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What formula is commonly used to calculate your credit utilization ratio?
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(Total Debt / Total Credit Limit) * 100
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Total Debt / Total Credit Limit
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Total Credit Limit * Total Debt
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Total Debt * Total Debt
If you have a credit card with a $2,000 limit and a balance of $500, what is your credit utilization ratio?
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25%
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50%
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75%
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100%
If you have three credit cards with limits of $1,000, $2,000, and $3,000, and balances of $500, $1,000, and $1,500, what is your total credit utilization ratio?
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33.33%
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50%
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75%
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100%
If you have a credit card with an APR of 18% and a balance of $1,000, what is the interest charged for one month?
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$18
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$15
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$180
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$150
What is the purpose of a grace period on a credit card?
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Delaying Payment
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Interest-Free Period
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Increasing Credit Limit
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Lowering Credit Score
If you have a late payment fee of $25 and an interest charge of $30 on your credit card, what is the total additional cost to your balance?
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$5
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$25
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$30
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$55
What factor has the least impact on your credit score?
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Payment History
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Credit Utilization Ratio
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Types of Credit in Use
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Length of Credit History
How does closing a credit card account affect your credit score?
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Increases Credit Score
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Decreases Credit Score
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Has No Effect
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Boosts Credit Utilization Ratio
If your credit score increases by 50 points after paying off a loan, and your original score was 650, what is your new credit score?
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700
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750
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650
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600
What does "APR" stand for in the context of credit cards?
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Annual Percentage Rate
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Average Payment Requirement
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Available Credit Period
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Account Performance Rating
