Credit - Financial Literacy Quiz

Which of the following is an advantage of using credit?

• interest and fees

• purchasing power

• finance charges

• overspending

What term means how trusted you are to repay borrowed money?

• open-end credit

• credit risk

• creditworthiness

• FICO

Which of these is NOT part of your credit score?

• length of credit history

• payment history

• total amount you owe

• high school grades

If you have a good credit score, you are more likely to:

• be offered a job

• be offered loans with better terms

• be offered low rates on car insurance

• All of these things

An agreement to receive a service now and pay for it later is

• service credit

• open-end credit

• closed-end credit

• credit report

After paying off the balance, which type of credit is able to be used again?

• open-end credit

• closed-end credit

• finance charged credit

• debit

Having good credit means you are a low-risk borrower.

• True

• False

A credit score is also known as a FICO score.

• True

• False

Creating many new credit accounts will improve your credit score.

• True

• False

Your credit score is a point value of how well you have handled credit in the past.

• True

• False