Credit and Debt

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

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

Having a great credit score will make it easier for you to get into a better educational institution.

• TRUE

• FALSE

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.

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.

Paying only the minimum balance on your credit card can lead to...

• an increase in your credit score

• paying more interest.

• late fees

• All of the above

When looking for pre-approval on a car loan you should...

• get a loan from the car dealer directly to keep things simple.

• Pick a loan with the highest interest rate.

• select the loan that has the longest repayment period.

• compare pre-approval offers and select the one that is best for you.

What could be a good option available to you if you are behind on loan payments?

• A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

• You can ignore your payments until the financial institution asks about them.

• You can take out a payday loan.

• Ask your financial institution to get out of the loan contract.

Credit cards can help _____________ when paid off on time regularly.

• build credit history

• act as a form of identification

• lower your debt

• balance your checking account