Credit Scores- What do you know?

Front

Having a low credit score usually means that -

Back

a person has a poor credit history

Answer explanation

Credit scores are a measure of someone's creditworthiness (their ability to pay back debts). A low score indicates someone hasn't managed their finances well, which means they will likely have high interest rates on credit cards and loans.

Front

People who obtain loans from payday loan stores, title loan offices, or pawn shops are most likely -

Back

consumers with low credit scores unable to obtain a bank loan

Answer explanation

Payday loan stores, title loan stores, and pawn shops are examples of predatory lenders that charge high interest rates and fees. These are places that people who are unable to obtain a loan from a bank due to their low credit score may use as an option to obtain a loan.

Front

A creditor determines a person's creditworthiness based on the person's

Back

character, collateral, and capacity

Answer explanation

When applying for credit the creditor reviews the person's credit record to determine their character, collateral, and capacity to show whether they pay their bills on time, whether they have sufficient income to pay off debts, and whether they don't have too much debt already.

Front

What is important in establishing good credit?

Back

Making payments on time

Front

A person, or a financial institution that lends money, and in return charges interest?

Back

Lender

Front

A person who takes and uses a sum of money under an agreement to pay it back?

Back

Borrower

Front

Which information would NOT appear on your credit report? Credit Card balance, Car loan, Mortgage, Debit Card balance

Back

Debit Card balance

Front

What is credit?

Back

An exchange where you pay the money back at a later date.

Front

If you pay just the minimum payment on your credit card statement....

Back

You will have to pay interest

Front

One similarity between a debit card and credit card is that they both can be used to make purchases online.

Back

They both can be used to make purchases online.