1.Why should you care about your credit score?

2. If you have four credit cards:

3. credit card one has a limit of $5,000 and an outstanding balance of $2,500,

4.credit card two has a limit of $2,000 and an outstanding balance of $500,

5.credit card three has a limit of $1,000 and an outstanding balance of $300, and

6.credit card four has a limit of $500 and an outstanding balance of $0.

Which credit card would you look to pay off first? Explain.

Calculate your credit utilization rate.

7. What are 4 relatively easy steps you can undertake to build or repair your credit in order to increase your credit score?

8. What features distinguish credit unions from banks?

9. Which type of lending institution are borrowers likely to be able to get a more favorable interest rate on loans?

10.What is the opportunity cost of borrowing?

11. What is the benefit of borrowing?

12. Based upon marginal analysis, explain how one determines whether to borrow or not? What factors into the decision-making process?

13. What is the difference between the real and nominal interest rate? Which rate is published?

14. What is the Annual Percentage Rate?