Understanding Credit

What percentage of Americans have not fully paid for their homes?

• 30%

• 40%

• 50%

• 60%

What is the average cost of a home in America?

• Less than $200,000

• $200,000 - $300,000

• $300,000 - $400,000

• Over $400,000

How do many people buy homes if they don't have enough money saved up?

• They borrow money from friends and family

• They rely on credit

• They sell their belongings

• They take out a personal loan

What is credit?

• The measure of trust a customer gives to a bank or store

• The amount of money a customer has saved up

• The cost of goods and services

• The interest charged on a loan

What is the best rule for spending?

• Spend more money than you have

• Don't spend more money than you have

• Only spend money on essential items

• Save all your money for the future

What is credit like?

• An investment

• An IOU

• A gift

• A loan

What happens if you don't pay back the money you borrowed on time?

• You will have bad credit

• You will receive a discount

• You will be rewarded

• You will be given more credit

What is a credit score?

• The amount of money you owe

• The number of credit cards you have

• The measure of your financial reputation

• The interest rate on your loans

What is considered a good credit score?

• 300 - 500

• 500 - 700

• 700 - 850

• 850 - 1000

How can you start building good credit?

• Get a credit card and make regular small purchases

• Borrow money from friends and family

• Take out a large loan

• Pay for everything in cash