Everfi Vault 4: Credit and Borrowing

Front

Cash is ________. Options: money you will borrow, money you will pay back later, money you have today, money you do not have

Back

money you have today

Front

Credit is ________.

Back

money you borrow and promise to pay back later

Front

A debt is _______.

Back

money you have to pay back

Front

Why is a credit card a type of debt?

Back

Using a credit card is borrowing money that needs to be paid back later.

Front

Which of the following is NOT true about credit cards?

• It can be easy to spend too much when you have a credit card.
• Other people are more likely to lend you money when your credit history is good.
• You do not need to worry about spending too much when you have a credit card.
• Other people are less likely to lend you money when your credit history is not good.

Back

You do not need to worry about spending too much when you have a credit card.

Front

Using cash is a good idea for ________. Options: buying small items you can afford now, buying items on sale, buying things you can't afford, buying items now to pay back later.

Back

buying small items you can afford now

Front

When is using a credit card a good idea?

Back

You need something now but won't have the money until the next time you get paid.

Front

When should you NOT use a credit card?

Back

When you want something now that you will never be able to afford.

Front

A credit history is ________.

Back

a record of how you pay back money you borrow.

Front

When your credit history is good, __________.

Back

other people are more likely to lend you money.