Credit & Banking Review

When someone repays something that they've used credit to purchase, the repayment usually includes interest.

• True

• False

If you have not paid off your entire credit card balance, you do not have to pay finance charges (interest & fees) on the remaining balance.

• True

• False

If someone has a poor credit score, they may need someone to act as collateral, or a person who will repay the loan if the borrower does not.

• True

• False

If someone makes only the minimum monthly payments on an ongoing credit card balance, they can usually pay the credit card balance off quickly.

• True

• False

One of the major benefits of using credit for purchases is that you don't have to pay the entire amount at once on large purchases like a home or a car.

• True

• False

If someone has a high credit score, they are likely to pay a higher interest rate that someone with a lower credit score.

• True

• False

If you make a payment late on a credit card, you will have to pay a fee or penalty.

• True

• False

Failure to make a payment, even the minimum payment, can hurt someone’s credit score.

• True

• False

If Robert has a credit score of 375, he can expect to be easily granted credit by a lender and enjoy a very low interest rate.

• True

• False

Co-signing for a car loan for a friend is usually a wise decision.

• True

• False