Question

question 7
what is the difference between having a co - signer and becoming an authorized user?
○ as a co - signer, you open an account and an adult signs on with you; as an authorized user, you are added to someones existing account
○ with a co - signer, you can open a credit card; as an authorized user, you can open any type of credit account
○ having a co - signer means only you are responsible for the bills; adding an authorized user means everyone is responsible
○ to be a co - signer, both people need to be over 21; to be an authorized user, you can be any age
question 8
10 pts
what term describes the amount you must pay in order to be considered “up - to - date” with your credit card payments?
○ interest rate
○ apr
○ closing balance
○ minimum payment

Explanation:

Question 7

To solve this, we analyze each option:

• Option 1: A co - signer is part of opening a new account (you + adult sign), an authorized user is added to an existing account. This matches the definitions.
• Option 2: Authorized users don't open credit accounts, they are added to existing ones. So this is wrong.
• Option 3: A co - signer shares responsibility, so "only you" is wrong.
• Option 4: There's no age requirement of 21 for co - signers, so this is wrong.

We define each term:

• Interest rate: Cost of borrowing, not the payment to be up - to - date.
• APR: Annual percentage rate, a rate, not a payment amount.
• Closing balance: The balance at the end of a period, not the payment to be current.
• Minimum payment: The least amount you must pay to be considered up - to - date on credit card payments.

Answer:

A. As a co - signer, you open an account and an adult signs on with you; as an authorized user, you are added to someone's existing account

Question 8