Credit Test

Using a loan could help with the purchase of which of the following?

• A. A new television

• B. A dream wedding

• C. A house

• D. Airline tickets to your dream vacation

When are loans a good option to use?

• A. To pay for airline tickets to you dream vacation.

• B. When paying for higher education

• C. To by a new tv

• D. For a dream wedding

What should you NOT us a loan to purchase?

• A. house

• B. Tuition for higher education

• C. New TV

• D. A car

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.

• A. Choosing a financial advisor

• B. Choosing a credit card

• C. Looking at your credit score

• D. Selecting a financial institution

Having a great credit score will make it easier for you to get into a better educational institution.

• True

• False

Secured loans are less costly than unsecured loans because _________.

• A. They usually have a lower interest rate.

• B. They require collateral.

• C. They are less risky for the financial institution.

• D. All of these are true.

Credit Cards can help ____ when paid off on time regularly.

• A. Build Credit History

• B. act as a for of identification

• C. Lower your debt

• D. balance your checking account

What option will NOT be available if you are behind on loan payments?

• A. A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

• B. You can borrow money from friends and family.

• C. You can ask to get out of your loan.

• D. Your financial institution might allow you to defer the loan but you'll have to pay the interest.

A person who has a car can AVOID having the car repossessed by

• Having the car serviced

• Driving carefully until loan is repaid

• Taking a driver's education course

• Making payments in full by the due date

If a person has a credit score of 780, he/she is more likely to

• Be charged a lower interest rate for a loan

• Be charged no interest for a loan

• Need to have at least 2 credit cards to get a loan

• Need proof of home ownership to get a loan