Pers.Finance 22-23

What is the connection between a credit report and a credit score?

• They are basically the same thing

• The information from your credit report is what determines your credit score.

• Your credit score determines what information is on your credit report.

• If you have a lot of accounts on your credit report you automatically have a high credit score.

How long do financial records remain on your credit report?

• 7 years

• 10 years

• 7 to 10 years

• Forever

Revolving credit is...

• a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.

• a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due

• a spinning door with money in it

• a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly

Which of the following is not a characteristic of an installment loan?

• repaid over time

• scheduled payments

• accompanied by an interest rate

• also known as a revolving loan

How can a cardholder avoid paying interest on a credit card?

• Do not pay anything
• Pay the minimum payment after its due date
• Pay the minimum balance every month
•  Pay the balance in full every month

Only making the minimum payment on a credit card every month will:

• lower the amount total paid for the purchase
• make you independently wealthy
• take longer to pay off which will result in paying more interest, more money!
• pay off the credit card faster

"Type of credit that includes a fixed payment schedule for a specified duration."

The above statement refers to ___________ ?

• Open credit

• Installment

• Revolving credit

To maintain a good credit score you must ______.

• have may open credit cards

• have credit monitoring

• manage your debt wisely

• check your credit score everyday

The amount of money that the lender lends to the borrower is called ....

• principal

• tenure

• default

• collateral

If you INCREASE the amount of your down payment, how will it affect the monthly payment?

• The monthly payment will go down

• The monthly payment will go up

• the monthly payment will stay the same