122678
AssignmentMultiple Select

How Credit Works

Question 122678 • TX-Personal Financial Literacy and Economics

What should a consumer review and consider when shopping for a credit card? Check all that apply.

Answer
A
The down payment that is required
B
The initial fees to open the account
C
The fees charged for late payments
D
The kind of collateral that is required
E
The annual percentage rate for the card
F
The Truth in Lending Act disclosure

Explanation

When comparing credit cards, review the costs of opening and using the account, including initial fees and late-payment fees, as well as the annual percentage rate (APR). The Truth in Lending Act disclosure provides important information about these costs and terms. A typical credit card does not require a down payment or collateral.

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