Credit

Credit is paying for goods now but receiving them later.

• True

• False

Credit is also called "tomorrow's money."

• True

• False

It's ok to borrow more than you can comfortably afford.

• True

• False

Items end up costing more when you use credit.

• True

• False

Which of these is a type of revolving credit?

• Mortgage Loan

• Car Loan

• Credit Card

• Checking Account

A secured loan does not require collateral.

• True

• False

Which type of loan should you avoid?

• Payday Loan

• Pawn Shop Loan

• Cash Advances

• All of the above

Ways to maintain a good credit score include:

• Paying your bills on time

• Maintaining a high balance on your credit card

• Applying for multiple cards at department stores

• Only using credit cards with a rewards program

What is a sign of too much debt?

• Living paycheck to paycheck

• Making minimum payments on credit cards

• Overdrafts on checking account

• All of the above

What is credit (check all that apply)

• Your reputation for financial responsibility

• Time allowed for repayment

• A source of revenue for banks

• Unlimited