Lending

Your credit score determines how successful you will be in obtaining a loan

• True

• False

Why should you worry about having "good credit?"

• better credit terms

• something you can brag about

• it's the adult thing to do

• bad credit is very expensive to live with

A person is currently paying $1,600 in rent, $80 in car insurance, and $200 on groceries. Their monthly income is $4000. What is their DTI ratio?

• 47%

• 74%

• 50%

• 36%

What is the single best thing you can do to help build a good credit score and to keep it once you have it?

• Pay my bills on time

• Keep balances on all accounts low

• Take out only the credit I need when I need it

• Pay cash

Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reasons for a positive credit history? Check all that apply.

• A good credit history portrays irresponsibility.

• A good credit history results in lower interest rates.

• A good credit history makes borrowing easier.

• A good credit history results in higher interest rates.

• A good credit history may result in denial of a rental application.

This year, Mr. Thomas has a higher credit score than he did last year. Which of the following should Mr. Thomas expect with the improved score? Check all that apply.

• a more difficult time borrowing money to buy a house

• an easier time getting a car loan

• an easier time renting an apartment

• a denial when opening a bank account

• higher interest rates on credit cards

To build a good credit history, you should

• open as much credit as possible quickly
• use the maximum credit allowed on all your credit cards
• pay on time and as much of your balance as possible
• all of these

What is credit?

• Free money
• Borrowed money
• Standard of living
• A term that causes tears

The cost of borrowing money is referred to as 

• Interest 
• Annual Percentage Rate 
• Credit 
• Credit Line 

To build a good credit history, you should

• pay the minimum or more on your account each month
• pay on time or early
• be careful not to take on too much debt
• all of these