EverFi Financial Literacy Lesson 5: Credit and Debt

Using a loan could help with the purchase of which of the following?

• A new television

• A dream wedding

• A house

• Airline tickets to your dream vacation

When are loans a good option to use?

• To pay for airline tickets to your dream vacation

• When paying for higher education

• To buy that new television

• For a dream wedding

What should you NOT use a loan to purchase?

• A house

• Tuition for higher education

• Airline tickets to your dream vacation

• A car

Which item is important to consider when selecting a credit card?

• Annual Percentage Rate (APR)

• Fees

• The look of the credit card

• Both APR and fees

Which of these items is NOT important to consider when selecting a credit card?

• Annual Percentage Rate (APR)

• The look of the credit card

• Credit limit

• Penalties and Fees

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.

• Choosing a financial advisor

• Choosing a credit card

• Looking at your credit score

• Selecting a financial institution

What is NOT a benefit of having a good credit score?

• When you need a loan, you'll have more loan offers to pick from.

• You'll get better interest rates on your loans.

• It will be easier to get an apartment.

• You'll get accepted to better education institutions.

What is a benefit of having a good credit score?

• Loan sharks will be less likely to bother you.

• You'll get accepted to better education institutions.

• You'll get more job offers.

• When you need a loan, you'll have more loan offers to pick from.

Having a great credit score will make it easier for you to get into a better educational institution.

• TRUE

• FALSE

Secured loans are less costly than unsecured loans because _________.

• They usually have a lower interest rate.

• They require collateral.

• They are less risky for the financial institution.

• All of these are true.