Budget and Credit Quiz Prep

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining out at local restaurants

• Loan payment on a new car

• Expenses for new clothes

• Postponing a purchase for a big-screen TV

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You then set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

• 6 months

• 1 year

• 2 years

• 3 years

Which of the following is a sign that you have a budget deficit?

• Your savings account balance grows every month.

• You overdraw your checking account on a consistent basis (with a $34 cost per overdraft).

• Your checking account balance grows every month.

• You pay more than the minimum monthly loan payment towards your student loans.

Greg is trying to decide whether he needs a car or not when he moves to the city. Which of the following would convince Greg to get a car rather than use public transportation?

• There are several public transportation routes between Greg's apartment and work.

• The cost of public transportation is less than Greg’s monthly car payment.

• Greg’s company covers half the cost of his monthly public transportation pass.

• Using public transportation, Greg’s commute to work one-way is two hours.

Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

• His gross pay is $2,500 and net pay is $3,000.

• His gross and net pay are $3,000.

• His gross and net pay are $2,500.

• His gross pay is $3,000 and net pay is $2,500.

Which of the following actions would improve your credit score?

• Using a large portion of your credit limit

• Opening a new savings account

• Closing out old credit cards

• Paying off your credit card bills

Having a low credit score can make it difficult to:

• secure an apartment lease

• obtain a car loan

• open a new credit card

• All answers are correct

Which of the following has the LARGEST impact on your credit score?

• Payment History

• Length of Credit History

• Types of Payments Used

• Amounts Owed

Having a good Credit score is important because...

• It can impact your ability to get approved for bank loans.

• It can impact whether you will be admitted to college.

• It can impact how much you will owe the government in taxes.

• It can impact your ability to get a driver’s license.

All of the following make up the big three Credit reporting agencies EXCEPT:

• TransUnion

• Experian

• Credit Karma

• Equifax