Unit 5 EXAM

• Credit is a loan (_____) from a financial institution that you must REPAY by a certain date, with INTEREST. 

• BORROWED MONEY

• FREE MONEY

• A Lawn

• A BANK

• Interest is A FEE charged for borrowing money. The interest rate is a percentage (%), usually calculated on an (____) basis, that must be paid back IN ADDITION to the original amount borrowed.

• WEEKLY

• MONTHLY

• YEARLY

• DAILY

A (____) is a rating used by credit reporting companies to help banks decide if they will GIVE YOU CREDIT. It is a record of how you have REPAID your credit obligations.

• bank report

• credit score

• money history

• RBI

• Credit scores are important. Credit scores help determine your eligibility for borrowing more money, such as a loan for college or buying a house or car. They also DETERMINE YOUR (____). 

• COLLEGE DEGREE

• CHARISMA FACTOR

• EXPENDITURES

• INTEREST RATE

• A High Credit Score gets you (____) interest rates.

• CHEAPER

• HIGHER

• MORE EXPENSIVE

• HELLO KITTY

Making payments (____) and borrowing responsibly are your best route to a great score.

• ONE TIME

• ON TIME

• SOMETIMES

• ALL THE TIME

A (____) tells lenders that you could be a RISKY borrower. It can affect your chances of being approved for credit (a loan) or RAISE your interest rate.

• Good Credit Score

• Great Looking Suit

• Poor Credit Score

• Well Written Essay

Credit is a type of loan.

• False

• True

When you borrow money, it is VERY important to pay it back. What three consequences of not paying on time?

• Your credit score goes down.

• You can no longer borrow more money.

• You will pay more money in interest.

• You will save money in the long run.

What are the REWARDS of paying back on time?

• Higher Credit Score

• You Save Money in the Long Run

• You will pay a lower interest rate.

• You get a LOWER credit Score.