Smart Money Pre-Assessment

Which of the following is the best example of a fixed expense?

• rent payment
• credit card payment
• cost of groceries
• cost of going out to eat with friends

Which of the following is a variable expense?

• cost of going out to eat with friends
• rent payment
• car payment
• insurance premium

Which of the following is not true of a budget?

• Budgets help you plan how to spend money you earn or receive
• Once a budget is set, it should not be revisited
• A budget can include charitable giving
• Budgets include both income and expenses

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 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 credit score?

• What lenders use to see if you are able to pay back credit
• 3 numbers
• What your score on a test is that was worth credit

When should you use a credit card?

• For large purchases!
• When I'm hungry
• Only for small purchases
• Never.

Late payments are retained on credit reports for 7 years.

• True
• False

Which is an exceptional credit score?

• 672

• 555

• 713

• 813

What type of credit score is this 570?

• Average

• Great

• Poor

• Excellent