Credit and Credit Cards

Which of the following is an advantage of using credit?

• Interest and Fees.

• Purchasing Power

• Finance Charges

• Overspending

What term means how trusted you are to repay borrowed money?

• Open end credit

• Credit risk

• FICO

• Credit worthiness

Which of the following is not part of your credit score?

• Length of credit history

• Payment history

• High school grades

• Amount you owe

If you have a good credit score you are more likely to:

• Be offered a job.

• Be offered loans with better interest rates

• Be offered better rates on car insurance

• All of the above

An agreement to receive a service now, like electricity or water and pay later is known as:

• Open End or Revolving Credit

• Service Credit

• Closed end or Installment credit

• Credit Report

After paying off the balance, which type of credit remains open to be used again?

• Closed end or installment credit

• Finance charge credit

• Open end or revolving credit

• Mortgage or House Payment

Having good credit means you are a low risk borrower.

• True

• False

A credit score is also known as a FICO score.

• True

• False

Creating many new accounts in a short period of time will improve your credit score.

• True

• False

Your credit score is a point value of how well you have handled credit in the past and how you may handle credit in the future.

• True

• False