MP3 Quiz 3 (credit cards and credit history)

Your ability to borrow is based on the lender's belief that you will __________________. 

• repay your debt

• make more money

• extend your loan

• apply for another loan

Why is it important to have a positive credit history?

• It can earn you a higher interest rate on a loan.

• It will affect your ability to buy a house or car.

• It will allow you to be able to skip payments on your credit card.

• It will allow you to pay just interest and not principal amount on a loan.

What is a student loan?

• A college savings account

• A loan you have to pay back with interest.

• Money awarded to a student that they don't have to pay back.

• A bank account

How can you establish a positive credit history?

• Paying your bills on time

• Buying stuff with cash only

• Paying less than the minimum payment

• Maxing out your credit card

Which is true about credit cards?

• When you use a credit card, the money is pulled from your checking account.

• There is no interest on credit cards.

• You have to make monthly payments on your credit card.

• There is not a limit on credit cards.

Debit Card is

• a card that allows you to pay the balance over a period of time, subject to interest

• a card that immediately deducts funds from your checking account

What is debt?

• Another word for death

• Something, typically money, that is owed or due

• A loan on which you do not have to pay interest

• That which is incurred during childhood and consummated in college

What is a credit card?

• The ace of diamonds

• A large plastic card designed to ruin consumer's finances

• A small plastic card issued by the government attached to a line of credit

• A small plastic card issued by a bank and attached to a line of credit

An amount of credit extended to a borrower is known as a...?

• Line of Extension

• Several dollars lined up in a straight line

• Available Credit

• In the finance world it is referred to as a "long nose"

What is a credit score?

• a number between 300 and 850 representing your creditworthiness

• a statistical number that evaluates a consumer's creditworthiness and is based on credit history.

• Often referred to as a FICO score

• All of the above