Credit Review Day 1

Is credit free?

• Yes

• No

Sam is in need of a quick cash advance and decides to borrow money against the value of their next paycheck. Sam is using a what?

• A) Payday loan

• B) Pawn shop loan

• C) Personal loan from a bank

Taylor is borrowing $10,000 to buy a car and agrees to use the car as collateral for the loan. This an example of a what?

• A) Secured loan

• B) Unsecured loan

• C) Payday loan

Alex wants to buy a bicycle and pay for it over time without taking a loan from a bank. The store offers to keep the bicycle aside while Alex makes payments until the full price is covered. Is this method known as:

• A) Layaway

• B) Installment plan

• C) Secured loan

Casey is considering a loan offer that allows borrowing up to a certain limit and repaying the borrowed amount plus interest over time, with the flexibility to borrow more as the balance is paid. Is this offer describing:

• A) Secured loan

• B) Revolving credit

• C) Closed-end credit

Jamie wants to take out a loan without offering any property or assets as security. Should Jamie look for a:

• A) Secured loan

• B) Unsecured loan

• C) Payday loan

Lee needs to get a new cell phone plan where they will pay for the service at the end of each month. Is this arrangement an example of:

• A) Service credit

• B) Open-end credit

• C) Secured credit

Morgan is offered a financing option at an electronics store that allows for purchasing a new laptop and paying for it in full with interest after a year. Does this describe an:

• A) Installment plan

• B) Layaway

• C) Revolving credit

Jordan is considering using a credit card for everyday purchases and paying off the balance over several months. Is this an example of:

• A) Open-end credit

• B) Closed-end credit

• C) Secured loan

Morgan is looking for a personal loan with a low interest rate. Which source is likely to offer competitive rates due to its not-for-profit status?

• Payday Loan

• Bank

• Credit Union