Credit Quiz (LAST ONE!!!)

What is credit?

• The ability to obtain goods and services without paying for them

• Obtaining goods and services while actually paying for them later

• Being given praise for a good deed

• Paying for a good over time, then receiving it later

Which of the following is NOT a reason a person needs credit?

• Renting an apartment

• Buying a house

• Getting a job

• Getting into a college or university

Which of the following is a way a person can build credit?

• Paying a utility bill on time for six months

• Buying and selling goods online

• Paying for goods with cash only

• Renovating old homes

Which of the "Three C's of Credit" refers to your credit history?

• Collateral

• Capacity to repay

• Character

• Creativity

Which of the "Three C's of Credit" refers to an asset that a lender accepts as "security" for a loan?

• Collateral

• Capacity to repay

• Character

• Creativity

Which of the "Three C's of Credit" involves the ability of the borrower to return the money on time, with interest?

• Collateral

• Capacity to repay

• Character

• Creativity

Which of the following is NOT an advantage of having GOOD credit?

• More financial options available

• Use low interest rates to make purchases

• The risk of not possibly receiving a needed loan

Which form of credit is usually used to buy a home?

• Credit cards

• Mortgage

• Debit cards

• Pre-paid cards

Which type of credit has fixed payments over a set period of time?

• Revolving credit

• Charge cards

• Credit cards

• Installment credit

Which type of credit must be paid in full every month?

• Charge card

• Installment credit

• Revolving credit

• Pre-paid card