Credit Basics

Front

All of the following are dangers of credit, EXCEPT: Overspending, Can be dangerous in tough economic times, Can increase your financial options, Can be expensive

Back

Can increase your financial options

Front

True or False: Credit can lead to overspending.

Back

True

Front

Which of the following is NOT a factor to consider when taking out a loan? Length of the loan, Total Cost of the loan, Impact of the monthly payment on your budget, How much time it takes to receive the loan

Back

How much time it takes to receive the loan

Front

How do you ruin your credit? Options: Have someone Co-Sign your loan, Not pay your bills, Get a gas/Apartment card, Cats

Back

Not pay your bills

Front

Which of the following would IMPROVE your credit score? Options: Closing out old credit cards., Paying off your credit card bill., Using a large portion of your credit limit., Opening a new savings account.

Back

Paying off your credit card bill.

Front

Interest is:

Back

The amount owed for borrowing money

Front

The "term" is the initial amount of money borrowed in a loan.

Back

False

Front

______________ is the amount of money you pay to use someone else's money.

Back

Interest

Front

An example of closed-ended credit is a(n) _______________

Back

Installment loan

Front

Type of loan used specifically for purchasing a home is a __________

Back

Mortgage