Front

Ava, Noah, and Priya are applying for a loan. Why would the lender check their credit history?

Back

To assess the risk of lending money to Ava, Noah, and Priya

Front

Michael is considering getting a credit card. Nora, who already has one, is explaining the benefits to him. What might she say?

Back

She might say that the benefits are convenience, building credit history, earning rewards, and fraud protection.

Front

What is the difference between a secured loan and an unsecured loan?

Back

A secured loan is backed by collateral, such as Charlotte's car, while an unsecured loan is not.

Front

How is Benjamin's credit score calculated?

Back

Credit score is calculated using various factors such as payment history, credit utilization, length of credit history, types of credit used, and new credit inquiries.

Front

What information can the bank expect to find in Benjamin's credit report? Options: Medical history, criminal records, and political affiliations. Personal identification details, credit accounts, payment history, public records, and inquiries. Social media activity, online shopping history, and travel records. Credit scores, employment history, and income details.

Back

Personal identification details, credit accounts, payment history, public records, and inquiries.

Front

Lily, Abigail, and Ethan are discussing ways to maintain a good credit score. Which actions can negatively impact their credit scores? Options: Paying off their credit card balance in full every month, Having a long credit history, Applying for a mortgage loan, Late or missed payments, high credit card balances, applying for too much new credit, and having a short credit history.

Back

Late or missed payments, high credit card balances, applying for too much new credit, and having a short credit history.

Front

What does the term 'credit limit' mean?

Back

It sets a maximum borrowing or spending limit for Scarlett.

Front

Isla is planning to take a loan for her new car. Benjamin explained to her about the role of interest rates in loans. Which of the following statements correctly represents what Benjamin might have told her? Interest rates in loans have no impact on the cost of borrowing money. Interest rates in loans determine the repayment schedule. Interest rates in loans are determined by your credit score, Isla. Interest rates in loans determine the cost of borrowing money, Isla.

Back

Interest rates in loans determine the cost of borrowing money, Isla.

Front

Scarlett is looking for ways to improve her credit score. What advice would you give her? Options: She should pay her bills late, increase her credit card balances, apply for new credit frequently, close old accounts, and never check her credit report. She should pay her bills on time, reduce her credit card balances, limit new credit applications, keep old accounts open, and check her credit report regularly.

Back

She should pay her bills on time, reduce her credit card balances, limit new credit applications, keep old accounts open, and check her credit report regularly.

Front

What did Hannah say about the impact of bankruptcy on Noah's credit score?

Back

Bankruptcy can significantly lower your credit score and stay on your credit report for several years.