Everfi Credit and Debt

Which item is important to consider when selecting a credit card?

• Annual Percentage Rate (APR)

• Fees

• The look of the credit card

• Both APR and fees

What is a benefit of having a good credit score?

• Loan sharks will be less likely to bother you

• You'll get accepted to better education institutions

• You'll get more job offers

• When you need a loan, you'll have more loan offers to pick from.

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.

What will happen to your credit score if you don't manage your debt wisely?

• You won't be able to track your credit score

• Your credit score will go up

• your credit score will go down

• It will not affect your credit score

Recommended methods to protect yourself from identity theft and fraud include

• placing a credit freeze with the credit bureaus

• monitoring your credit report every 2-3 years

• allowing inaccurate information to be removed from your report after 7 years

• utilizing a specialty locking or monitoring service

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

• an increase in your credit score

• paying more interest

• late fees

• all choices

What option will NOT be available 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 borrow money from friends and family

• You can ask to get out of your loan

• Your financial institution might allow you to defer the loan but you'll have to pay the interest.

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