questions 8-10
8) With the recent hacking of Equifax, identity theft is on the rise. It is more important than ever to make sure that you constantly monitor your accounts for any suspicious charges or changes to your accounts. Every bank, credit card company or financial institution report to at least one of the 3 credit bureaus. What is the time limit and monetary liability that you have, if you are a victim of: 8a) banking fraud? 8b) Credit fraud? 9) You decided to go and apply for a credit card at your local financial institution. The Prime rate currently announced was 4.7%. You have an excellent credit history and FICO score. You were offered 19.99% interest rate for a rewards card. How is each interest rate, which you and other borrowers receive from a lender or credit company, determined or calculated by the creditors or institution? 10) You have a few credit cards that you are currently paying the minimum payment on, which have high interest rates. You cannot pay it all off before the end of the month and as a result have only been paying the minimum. Recently you receive an offer for 0% balance transfer and think it is a good idea to transfer your balances from the various different cards in order to pay it off faster without any more interest or finance charges incurred. 10a) Explain how credit card companies make money on balance transfers. 10b) Explain how you would use a balance transfer correctly and win in the balance transfer game". 8) With the recent hacking of Equifax, identity theft is on the rise. It is more important than ever to make sure that you constantly monitor your accounts for any suspicious charges or changes to your accounts. Every bank, credit card company or financial institution report to at least one of the 3 credit bureaus. What is the time limit and monetary liability that you have, if you are a victim of: 8a) banking fraud? 8b) Credit fraud? 9) You decided to go and apply for a credit card at your local financial institution. The Prime rate currently announced was 4.7%. You have an excellent credit history and FICO score. You were offered 19.99% interest rate for a rewards card. How is each interest rate, which you and other borrowers receive from a lender or credit company, determined or calculated by the creditors or institution? 10) You have a few credit cards that you are currently paying the minimum payment on, which have high interest rates. You cannot pay it all off before the end of the month and as a result have only been paying the minimum. Recently you receive an offer for 0% balance transfer and think it is a good idea to transfer your balances from the various different cards in order to pay it off faster without any more interest or finance charges incurred. 10a) Explain how credit card companies make money on balance transfers. 10b) Explain how you would use a balance transfer correctly and win in the balance transfer game
