Foolproof Module 6 Test Answers (2024)

FAQs

What was the main thing Vinnie did wrong? ›

What was the main thing Vinnie did wrong? He used one credit card to pay other credit card bills.

Now, how much money will you need for retirement? A good rule of thumb: You want to have at least 80% of your working income when you retire. You want to have enough retirement income to keep you going for 30 years.

The grace period: How many days you have to pay your credit card bill in full before you're charged a lot of interest. Credit card companies have different grace periods. Some give you 21 days to pay your bill in full. Some give you 25.

Since income is not one of the five factors that determine a credit score, the wealthy are just as likely to have a low credit score as the people with lower income. The rich can miss payments, rely too heavily on credit, and open too many new accounts, all of which may lower their credit score.

Risk-based financing is illegal and cannot be used by companies. Because your credit rating is low, a company charges you more interest on a loan. But the interest rate is not directly related to your credit. This company charges you as much as it can, simply because they think you have no other choices.

Based on the calculation in the table, if your expected annual spending exceeds $30,000, $500,000 will not be enough to cover your expenses over 20 years in retirement. Consulting with an experienced financial advisor can provide tailored advice to assess your retirement needs based on your situation.

“With a nest egg of $100,000, that would only cover two years of expenses without considering any additional income sources like Social Security,” Ross explained. “So, while it's not impossible, it would likely require a very frugal lifestyle and additional income streams to be comfortable.”

Based on the same parameters above, you'd save approximately $327,161 by age 65 if you put away $100 a month with a 3% partial employer match of your salary.

The Consumer Financial Protection Bureau recommends keeping your credit utilization under 30%. If you have a card with a credit limit of $1,000, try to keep your balance below $300.

If you can't pay your credit card bill, it's important to act right away. Contact your credit card company immediately. Many card companies are willing to work with you to change your payment if you're facing a financial emergency.

What is the maximum you should ever owe on this card? ›

Keeping your credit utilization at no more than 30% can help protect your credit. If your credit card has a $1,000 limit, that means you'll want to have a maximum balance of $300.

Payment history.

Your payment history, or how consistently you pay your bills on time, is usually the biggest factor in calculating your credit score. Because it's such an important component, late or missed payments can have a significant overall impact on your score.

Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

Final answer: The one item not impacted by a good credit history is an employer's decision to offer you a job, as credit history is primarily important for financial transactions involving borrowing. Explanation: The item not impacted by a good credit history is C- an employer's decision to offer you a job.

The answer that best describes what happens in a money flip is that one side of the coin is randomly chosen to be the outcome when the coin is flipped and lands. In a money flip, typically a coin is used to randomly decide between two options.

The statement that is true is A: "Since my credit score is going to impact my freedom, my job, and my goodie collection, I should start thinking about my credit score now." Credit scores are important because they can affect various aspects of your life.