Everfi Vault 4: Credit and Borrowing

Cash is ________.

• money you will borrow

• money you will pay back later

• money you have today

• money you do not have

Credit is ________.

• money you are given and promise to pay back later

• money you borrow and promise to pay back later

• money you borrow and do not have to pay back later

• None of the above

A debt is _______.

• money you have to pay back

• money you do not have to pay back

• money used for needs, not wants

• money used for wants, not needs

Why is a credit card a type of debt?

• Credit cards are only used in stores and not between friends.

• Credit card companies charge a small fee to use them.

• Using a credit card is borrowing money that needs to be paid back later.

• Using a credit card allows you to earn points and rewards.

Which of the following is NOT true about credit cards?

• It can be easy to spend too much when you have a credit card.

• Other people are more likely to lend you money when your credit history is good.

• You do not need to worry about spending too much when you have a credit card.

• Other people are less likely to lend you money when your credit history is not good.

Using cash is a good idea for ________.

• buying small items you can afford now

• buying items on sale

• buying things you can't afford

• buying items now to pay back later

When is using a credit card a good idea?

• You want something now that you can't afford ever.

• You have the money to buy what you need now.

• You want something and have included it in your budget.

• You need something now but won't have the money until the next time you get paid.

You should NOT use a credit card when _________.

• you want something now that you will never be able to afford.

• you need something now but can't pay for it yet.

• you have made a monthly budget.

• you have just started a new job,

A credit history is ________.

• the first step in creating a budget.

• a record of money you spend.

• a record of how you pay back money you borrow.

• the same things as a bank statement.

When your credit history is good, __________.

• it's easier to spend your money.

• other people are more likely to lend you money.

• it's easier to budget your money.

• you can get a better job.