Quiz Questions on P2P Payments and Credit Score

How Can You Get Your Money Back if You Send a P2p Payment to the Wrong Person?

Answer: To get your money back if you send a P2P payment to the wrong person, you can try contacting the recipient, reaching out to your payment service provider, and filing a dispute or claim.

Explanation: To recover funds after sending a P2p payment to the wrong recipient:

1. Contact the mistaken recipient, request a refund, and explain the situation.

2. Notify your payment service provider to seek their assistance in recovering the money.

3. If the recipient is uncooperative, consider filing a dispute or claim with your provider, providing evidence to support your case.

What is the scale for minimum to maximum possible credit score?

Answer: 300-850

Explanation: The scale for minimum to maximum possible credit score ranges from 300 to 850, utilizing a ratio scale that assigns meaningful differences between scores. This range enables lenders to assess an individual's creditworthiness effectively, with higher scores indicating better credit health and financial responsibility. However, it's important to note that different lenders may have varying definitions of 'good' or 'bad' credit scores within this range.

If you have a balance of $750 on a $2,000 credit card, what is your credit utilization percentage?

Answer: 37.5%

Explanation: To calculate your credit utilization percentage, divide your credit card balance ($750) by your credit limit ($2000), then multiply by 100. In this case, the calculation is (750 / 2000) *100 = 37.5%. Therefore, your credit utilization percentage is 37.5%.

What is the impact of using a credit card to get cash from an ATM instead of a debit card?

Answer: Using a credit card to withdraw cash from an ATM can result in additional fees, including a cash advance fee and higher interest rates, unlike debit cards, which typically do not incur such charges.

What accounts cannot be linked to most P2P apps or services?

Answer: Certificate of deposit

Explanation: Using a credit card to get cash from an ATM typically results in higher fees and interest rates compared to using a debit card. Credit card cash advances often incur immediate cash advance fees and higher interest rates, making it a more expensive option. Additionally, interest starts accruing immediately without a grace period, leading to higher overall costs for the borrower.

What value does the video recommend keeping your credit utilization percentage below?

Answer: Below 30%

Explanation: The video recommends keeping your credit utilization percentage below 30%. Maintaining a utilization rate under this threshold signifies responsible credit management, positively impacting your credit score and demonstrating favorable financial habits to potential lenders. Keeping balances below 30% of your available credit limit is a widely accepted practice for maintaining a healthy credit profile.

Under the FCBA, you are only liable for a maximum of _________ if a stranger uses your card.

Answer: $50

Under the FCBA, how much of credit card charges are you allowed to challenge if you authorize someone to use your card?

Answer:  Over $50