EverFi: Credit and Debt

Using a loan could help with the purchase of which of the following?

• A new television

• A dream wedding

• A house

• Airline tickets to your dream vacation

When are loans a good option to use?

• To pay for airline tickets to your dream vacation

• When paying for higher education

• To buy that new television

• For a dream wedding

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when ____.

• Choosing a financial advisor

• Choosing a credit card

• Looking at your credit score

• Selecting a financial institution

To maintain a good credit score you must ____.

Evaluate responses using AI:

OFF

What will happen to your credit score if you do not manage your debt wisely?

• You won't be able to track your credit score

• Your credit score will go up

• Your credit score will go down

• It will not affect your credit score

Not managing your debt wisely can result in ________.

• An increase in your credit score

• A decrease in your credit score

• Inaccessible credit score

• No change in your credit score

Recommended methods to protect yourself from identity theft and fraud include ________.

• Placing a credit freeze with the credit bureaus.

• Monitoring your credit report every 2-3 years.

• Allowing inaccurate information to be removed from your report after 7 years.

• Utilizing a specialty locking or monitoring service.

Which of the following will help you protect yourself from identity theft and fraud?

• Regularly monitor your credit report.

• Contact lenders and credit bureaus to address incorrect information.

• Freeze your credit.

• All of the above

Which of the following is NOT a recommended method to protect you from identity theft?

• Expensive specialty locking or monitoring service.

• Place a credit freeze with the credit bureaus.

• Regularly monitoring your credit report.

• Contacting lenders and credit bureaus to report inaccurate information.

Which is a positive reason for using a credit card to finance purchases?

• You will get charged high interest.

• Paying it off on time can help build your credit history.

• You'll be able to spend a lot of money without paying it back

• You won't have to budget for your credit card expenses.