Credit 2022

Capacity refers to

• how you have handled credit in the past

• The ability to pay back the loan

• have you lived at the same address for a period of time

• accepting more debt

According to the bank, which loan has more risk?

• personal loan

• mortgage

• car loan

• All the above loan have the same amount of risk

A line of credit established in advance so the borrower does not have to apply for credit each time new credit is desired.

• Rent‐to‐own loan

• Pawn loan

• Open‐end credit

• Refund anticipation loan

A loan which the borrower must repay the amount in a specified number of equal payments.

• Title loan

• Payday loan

• Closed‐end credit

• Refund anticipation loan

True or False: Credit can lead to overspending.

• True
• False

The least amount that must be paid on a credit card each month is

• Late Fee
• Credit Limit
• Payment amount
• Minimum Payment

Tags

CCSS.7.RP.A.3

How can a cardholder avoid paying interest on a credit card?

• Do not pay anything
• Pay the minimum payment after its due date
• Pay the minimum balance every month
•  Pay the balance in full every month

Which is the better credit score?

• 620

• 500

• 700

• 820

The credit company can charge interest if the credit card bill is not paid in full by the due date

• True
• False

Tags

CCSS.5.NF.B.5B

What is the recommended annual debt limit

• 10%

• 15%

• 20%

• 25%