Credit Quiz

What is credit?

• The ability to lend money or provide goods and services with the understanding that payment must be made immediately

• The ability to lend money or provide goods and services with the understanding that payment will be made later

• The ability to borrow money or obtain goods and services with the understanding that payment must be made immediately

• The ability to borrow money or obtain goods and services with the understanding that payment will be made later

What is revolving credit?

• A type of credit that requires collateral or a co-signer in order to obtain

• A type of credit that allows you to borrow money for a specific purchase and repay it over an agreed upon period with fixed payments

• A type of credit that requires immediate payment in full

• A type of credit that permits you to borrow up to a specified limit and repay the debt over time

What is installment credit?

• A type of credit that permits you to borrow up to a specified limit and repay the debt over time

• A type of credit that requires collateral or a co-signer in order to obtain

• A type of credit that requires immediate payment in full

• A type of credit that allows you to borrow money for a specific purchase and repay it over an agreed upon period with fixed payments

How do you obtain credit?

• By providing information about your age, gender, and nationality

• By providing information about your income, employment history, and credit score

• By providing information about your hobbies, interests, and social media accounts

• By providing information about your favorite color, food, and movie

What can help improve your odds of approval for credit?

• Applying for multiple loans at the same time

• Applying for a secured loan or asking someone with good credit to co-sign your application

• Applying for a loan without collateral or a co-signer

• Applying for an unsecured loan or asking someone with bad credit to co-sign your application

Why is credit important?

• It allows you to purchase goods and services without having to pay immediately

• It allows you to save money by getting better interest rates and terms

• It allows you to avoid paying bills and debts

• It allows you to lend money to others and earn interest