NONFICTION #3

1. Which of the following questions should you ask before making a purchase on credit? (Choose all that apply) Do I have the money to make payments? Is this item something I need or something I want? ]	2. Which of the following offer credit cards? (Choose all that apply) Banks Retail stores
3. If you find you must make a larger purchase using a credit card, what is the "rule of thumb" for paying off the debt? Pay off the debt within six months	4. To what percentage of your take-home income should your debt payments be limited? 10% to 20%
5. Which types of credit are referred to as "revolving credit"? (Choose all that apply) Department store credit cards Lines of credit	6. How can you protect yourself from credit card fraud? (choose all that apply) Keep track of cards by making a list of important information about the cards Check your statement each month by using receipts for purchases you have made
7. What is APR? Annual Percentage Rate	8. It is a good idea to pay off your credit cards each month in full. True

It is very important to have good credit because that is your back up of money which you will need to make big purchases such as Home, Car, etc. Anytime you apply for a credit card or loan they refer to your credit score because it show how well you can maintain your loans. You can keep your credit good by making all the payments on time. I would always keep balance in my checking or saving account so I can make a payment when i need to and i will try to use my credit card often because you need to prove them that you are trustable person.