Using Credit

The three major credit bureaus are Equifax, TransSiberian, and Experion.

• True

• False

What type of loan is a credit card?

• Open-ended

• Closed-ended

What is an interest rate?

• The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

• The fee that is paid to borrow money.

• The non-interest portion of a loan.

• The rate lenders charge borrowers for money.

What is a credit score?

• A number that represents the risk a lender takes on a borrower.

• An average of all of a borrower's credit accounts.

• A number that represents how much money a borrower owes.

• A score from a test given to borrowers by lenders.

How does a high credit score impact a borrower's interest rate, monthly payment, and total price paid for the item?

• Does not impact them

• Raises them

• Lowers them

Does the number of credit accounts a consumer holds affect their credit score?

• Yes

• No

Consumer credit can help a lender determine how much a borrower is charged to borrow money.

• True

• False

What is the Prime Rate?

• The non-interest portion of a loan.

• The rate lenders charge borrowers for money.

• The number that represents the general level of interest rates in the economy.

• The fee that is paid to borrow money.

Credit allows you to?

• Receive an item right now and never pay for it.

• Purchase an item right now and pay for it later.

• Pay for an item right now, but receive it later.

• Purchase an item right now and pay for it right now.

What is interest?

• The fee that is paid to borrow money.

• The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

• The non-interest portion of a loan.

• The rate lenders charge borrowers for money.