Lesson 5- Credit and Debt EverFi

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

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.

The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.

• it requires collateral.

• the loan takes longer to get.

• it has high-interest rates.

• your parents will make sure you pay it back.

To maintain a good credit score you must ______.

• manage your debt wisely.

• check your credit score every week.

• have credit monitoring.

• have many open credit cards.

Which of the following will help you protect yourself from identity theft and fraud?

• Regularly monitor your credit report.

• Contact lenders and credit bureaus to address incorrect information.

• Freeze your credit.

• All of the above.

Paying only the minimum balance on your credit card can lead to...

• an increase in your credit score

• paying more interest.

• late fees

• All of the above

All of the following are benefits to paying the full balance on your credit card each month EXCEPT:

• Your credit score can decrease.

• You won't have to pay interest

• You won't have to pay any late fees.

• Your credit score can increase

Benefits to paying the full balance of your credit card each month include:

• Paying more in interest

• Decreasing your credit score

• Not having late fees

• Increasing your credit score

When looking for pre-approval on a car loan you should...

• get a loan from the car dealer directly to keep things simple

• select the loan that has the longest repayment period.

• compare pre-approval offers and select the one that is best for you.