types of credit quiz

As a young adult, all of the following are good strategies for building credit, EXCEPT:

• Become an authorized user on a credit card used by your parent or guardian

• Take out a payday loan

• Open a credit card, with your parent or guardian as a cosigner

• Open and use a secured credit card

Which of the following is TRUE when you make only the minimum payment each month on your credit card?

• Credit card companies have permission to sell your info

• You are charged interest on the remaining balance

• Your credit line is restored to its maximum amount

• It is the fastest way to pay off your debt

Which of these credit payback strategies would lead to the HIGHEST overall cost?

• Making the minimum payment (3% of your credit card balance) every month with an occasional late payment

• Making the minimum payment (3% of your credit card balance) every month on time

• Paying 20% of your credit card balance every month on time

• Paying off your credit card bill in full every month

Which of the following is most likely to represent a fixed rate, secured debt?

• A credit card

• A prepaid debit card

• An auto loan

• A student loan

Which of the following could be a secured loan? (Click all that apply)

• Auto Loan

• Student Loan

• Pay Day Loan

• Mortgage Loan

What may NOT impact the interest rate on your loans?

• The loan amount

• Your relationship with the financial institution

• Your credit score

• Your level of education

What summarizes your credit history based on your financial behavior?

• Credit Report

• Balance

• Credit Score

• Credit Limit

The interest rate is an additional charge that the lender received on top of your borrowed amount.

• True

• False

Which of the following is NOT a typical type of credit?

• Overdraft from bank

• Prepaid Debit Card

• Credit Card

• Mortgage Loan

An installment loan is an "open line of credit" that is used for purchases where the payment amount varies monthly?

• True

• False