Credit Test

Which type of loan below would be considered an Installment Plan? (Hint: Installment plans have a set payment every month until they hit $0)

• A car loan that will expire after all payments are made

• A Home Depot credit card that gives you a $5,000 limit and doesn't expire

• A Visa gift card with a set amount of $100

• Taxes on goods and services

Which one of the places below would be a good example of a Credit Institution?

• Chic Fil A

• The local shell gas station

• Bank of America

• The State of Texas

How many numbers will someone's credit score be?

• 3 numbers

• 5 numbers

• 1 number

• 2 numbers

John has an excellent credit score. He pays his bills on time and has very little debt. Which credit score below would be considered an excellent credit score?

• 400

• 150

• 800

• 550

What are some negative consequences of having a low credit score?

• Your interest rates on loans or credit cards will be higher and getting a loan will be harder

• Your interest rates will be lower

• No one will loan you money

• Getting a loan will be easier

Where can you find your credit score along with a "book report" on all of your credit history?

• Your Credit Report which can be accessed through several websites

• Your local bank will tell you

• A Visa Credit card report

• In your Iphone settings

What is an APR?

• the percentage rate you owe annually on a loan

• The date which your last payment on the loan is due

• The day the baby will be born

• The amount of money you will receive for the loan

which statement below best describes an Annual Percentage Rate?

• It always shows up in the form of a decimal

• It is the annual fee a financial institution will charge you for borrowing money

• It is the upfront downpayment you have to pay for buying a car

• It is free money the bank will give you for being a customer

If John has an Annual Percentage Rate of 25% on his Visa card, how might he be able to find out his monthly percentage rate?

• he needs to divide 25% by 12 months

• He needs to multiply the percentage rate times the amount of money he owes

• he needs to divide the money he owes by 12 months

• he needs a hobby

How do credit cards make money off of their customers?

• they charge you a fee for borrowing their money called an annual percentage rate

• They charge everyone a $50 application fee

• They give their customers free money to use their services

• Credit card companies charge a one time fee of $100 to use their money