Does Credit Matter?

How is a secured credit card different from the far more typical unsecured credit card?

• A secured credit card is the same as a debit card, drawing money down directly from your checking account

• A secured credit card has interest rates far lower than those of a typical credit card

• A secured credit card requires the borrower put down a deposit to create their credit limit

• A secured credit card cannot be used to shop online, because you have to sign a receipt after every purchase

All of the following statements about predatory lending are TRUE EXCEPT....

• They have a federally-mandated maximum APR of 25%

• They disproportionately affect communities of color

• They can come in many forms like high interest rates and excessive fees

• They often occur in conjunction with home mortgages

What is the purpose of a credit report?

• To provide a free tool for you to track your finances and budget

• To compare the cost of different lines of credit

• To help lenders determine if you are a qualified candidate for credit

• To prove that you are authorized to work in the United States

What is the highest FICO credit score you can obtain?

• 100

• 850

• 650

• 1000

Which of these parties is least interested in checking your credit score?

• A future employer

• A car dealership

• An apartment leasing office

• A college admissions office

All of these are true about late credit card payments, EXCEPT....

• They can drop your credit score by as much as 100 points

• They are an extremely rare occurrence among American credit card holders

• They can stay on your credit report for up to 7 years

• They are the largest factor in your overall credit score

Meghan asks 4 friends for advice on how to raise her credit score, which is currently at 650. Which is the strongest piece of advice?

• Close as many credit card accounts as you can

• Open up a savings account

• Pay your credit card bill on time each month

• Pay off your debts as slowly as possible

Struggling to pay off excess debt can lead to all of these consequences, EXCEPT...

• Developing health problems from the stress of carrying debt

• Having your wages reduced by collectors on unpaid debts

• Being fired from your job if your emplolyer finds out you have too much debt

Why is it important to check your credit report regularly?

• to improve your credit score through frequent hard inquiries

• to identify potential errors or fraudulent activity

• to monitor the transactions on your credit card

• to automatically increase the credit limit on your revolving credit accounts

Which student is most likely to have the highest credit score?

• Hassan has 3 credit cards with low balances and often forgets which they need to make payments on and is late

• Bekkah has 2 credit cards and they're usually near their credit limit

• Kareem has 3 credit cards that they pay in full every month and recently applied for a new line of credit

• Sarah has never had a credit card and has over $10,000 in her savings account