Financial Literacy Review

A credit score is a numerical representation of a person's creditworthiness, based on their credit history.

False

Factors include payment history, amount of money owed, length of credit history, and types of credit used.

A debit card withdraws money directly from your bank account, while a credit card allows you to borrow money up to a certain limit to make purchases.

Using a credit card means borrowing money to make a purchase, which must be paid back later.

A loan is money that is borrowed and must be paid back with interest.

The purpose of a credit card is to allow consumers to make purchases on credit and pay for them later.

A positive credit history shows that a person has consistently paid their debts on time.

Missing a payment can negatively impact your credit score and may result in late fees.

Credit utilization.