Acquiring and Growing Credit

Which type of card will affect your credit history?

• debit card

• driver's license

• student credit card

• state ID card

Which action can help improve your credit history?

• Leave credit card bills outstanding

• Always pay your credit card bill on time

• Only get a debit card and avoid credit cards

• Make a major purchase that you can't afford right now

Why is it important to find a credit card with a lower APR?

• A lower APR means you have more time to pay off your balance

• A lower APR gives you a better credit history

• A lower APR impacts your grace period

• A lower APR means you pay less in interest

Why do lending and credit card companies use a borrower's Social Security number when opening an account?

• To withdraw taxes

• To assign an interest rate

• To protect against fraud

• To ensure borrowers are US citizens

Which is the best strategy for paying your credit card bill?

• Make no monthly payments at all

• Pay the minimum payment every month

• Pay half the balance every month

• Pay the entire balance every month

How do lenders evaluate if a borrower or cosigner will pay them back?

• Cadence, collateral, calendar

• Callousness, capacity, character

• Capacity, criticism, character

• Capacity, collateral, character

What is the correct definition of capacity for potential cosigners?

• The cosigner's credit history

• The cosigner's financial assets, such as a house or car

• The cosigner's past record of paying on time

• The cosigner's current financial situation

What is the correct definition of collateral for potential cosigners?

• The cosigner's credit history

• The cosigner's financial assets, such as a house or car

• The cosigner's past record of paying on time

• The cosigner's current financial situation

What is the correct definition of character for potential cosigners?

• The cosigner's current bank balance

• The cosigner's financial assets, such as a house or car

• The cosigner's past record of paying on time

• The cosigner's current financial situation

What is the correct definition of a cosigner for a loan?

• Someone who will pay a loan for a borrower

• Someone who will promise to pay a loan if the borrower doesn't

• Someone who will pay the electric bills for a borrower

• Someone who signs the loan documents