Everfi- Financial Literacy Lesson 5 Credit and Debit

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 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 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.

What will happen to your credit score if you do not manage your debt wisely?

• You won't be able to track your credit score

• Your credit score will go up

• Your credit score will go down

• It will not affect your credit score

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.