Credit Review

The more credit cards I have, the higher my credit score will be.

• True

• False

All credit cards charge an annual fee and offer rewards.

• True

• False

The minimum age to be added as an authorized user on a credit card is 18.

• True

• False

Which of these is NOT one of the C's of credit?

• Character

• Credit Score

• Capacity

• Collateral

How do banks make money off of the credit they issue?

• The charge a large, one-time fee at the start of the loan.

• They take out a small fee each month from your bank account.

• They charge interest that is factored into the monthly payment.

• This is a trick question - they don't make money!

Which of the following is an example of an installment loan? (More than one answer is correct)

• Mortgage

• Auto Loan

• Credit Card

• Debit Card

Which of the following could be a SECURED loan? (There is more than one correct answer!)

• Auto Loan

• Student Loan

• Mortgage

• Payday Loan

What is an advantage to getting a secured loan?

• They usually have a higher interest rate than unsecured loans.

• They usually have a lower interest rate than unsecured loans.

• Secured loans give you an extra 90 days to make a missed payment.

• Secured loans don't charge any interest for the first 12 months.

Which of these will NOT impact the interest rate on your loan?

• Your relationship with the financial institution.

• Your credit score.

• The principal amount of the loan.

• Your ethnicity or gender.

Which of the following could reduce how much interest you pay in total on an auto loan? (There is more than one correct answer.)

• Have a larger down payment

• Have a smaller down payment

• Choose a longer term length

• Choose a shorter term length

• Make additional payments towards the principal