Credit and Budget

Revolving credit is...

• a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.

• a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due

• a spinning door with money in it

• a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly

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

What is an interest rate?

• it is your level of interest about a certain topic expressed as a percentage of your total interest

• The amount in terms of dollars that you have to pay back on a purchase

• it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires

• The amount in terms of a rate or percentage that you have to pay back on an amount borrowed

What is a credit report?

• A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness

• A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness

• A report which shows which credit cards are better than others

• A report invented by Allan Greenspan and credited to Al Gore

What is a loan term?

• The amount of time a revolving line of credit can be open

• The payment of income to a savings account in regular payments over a set period of time.

• The period in which the loan is to be repaid, each payment broken down into individual installments

• Specifically related to the black market for human organs, and typically meant as the length of time one's kidney will be used for other purposes

My landlord can report my failure to pay rent to a credit reporting agency.

• True
• False

I should review my credit report for errors.

• True
• False

Your credit score is not configured off of which of the following:

• Payment history

• Amount of money owed

• Grades in School

• Length of credit history

a number assigned to a person that indicates to lenders their capacity to repay a loan.

• Credit score

• Credit report

• Credit history

• Credit bureau

Which of the following is NOT a factor to consider when taking out a loan?

• Length of the loan
• Total Cost of the loan
• Impact of the monthly payment on your budget
• How much time it takes to receive the loan