Credit Test Review

Which of the following is most likely to represent a secured loan?

• Student Loan

• Auto Loan

• Payday Loan

• Credit Card Loan

All of the following are true of Fixed Rate Mortgages EXCEPT

• They lock in your price for the life of the loan

• The interest rate stays the same

• The payment stays the same but the interest rate can change

• They offer a slightly higher upfront rate

What is a disadvantage of using a credit card?

• Make an emergency purchase

• You can make a purchase and wait several months to pay it all back

• Quicker access to money

• Will give you potential cashback for spending

A loan with a longer term will have ________

• Higher Interest

• Few payments

• Lower Interest

• A bigger purchase

A good credit score can help you get all of the following except...

• Better APR

• A Mortgage

• Higher Salary

• Rewards Credit Card

What is one key sign of a scam?

• Asking for Personal Information

• Offering a free trial

• Giving you a buy one, get one coupon

• Offering 20% off of a sale

Repeated refinancing of a loan by a homeowner is considered?

• Equity Skimming

• Bait and Switch

• Change of Servicer

• Loan Flipping

Who might predatory lenders target?

• Homeowners

• People with emergency expenses

• People struggling to pay their bills

• All of the above

Daniel has a credit card limit of $2,000. He has already spent $400. What is the maximum that he can spend on his credit card?

• $1,500

• $600

• $1,600

• $2,000

All of the following are true for a shorter loan term EXCEPT

• Higher Monthly Payments

• Higher Interest

• Less Total Interest Paid