122677
AssignmentMultiple Select

How Credit Works

Question 122677 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

What should a consumer review and consider when shopping for a credit card? Check all that apply.The down payment that is requiredThe initial fees to open the accountThe fees charged for late paymentsThe kind of collateral that is requiredThe annual percentage rate for the cardThe Truth in Lending Act disclosure

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

Compare the card’s opening fees, late-payment fees, and annual percentage rate (APR), since these affect the cost of using the card. Review the Truth in Lending Act disclosure, which explains important rates and fees. A credit card generally does not require a down payment or collateral.

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