Credit Exam Practice

the ability to understand and make use of a variety of financial skills, including personal money management, budgeting and invessting is known as...

• Economics

• The Market

• Financial Literacy

• Bull Market

What is debt?

• Money that you have in the bank

• Money that is owed

• Money that you get from work

How long does negative information, like a bankruptcy, typically last on your credit report?

• 1-3 years

• 4-5 Years

• 7-10 Years

• 11-13 Years

There are ____ major credit reporting bureaus that lenders will use to check your credit report and credit score.

• 2

• 3

• 4

• 5

When you are 18, you can join CreditKarma for which of the following reasons?

• To check your credit score

• To see suggestions for improving your credit

• To view negative information on your credit report

• To view reported balances on your accounts

• All of the above

Your credit report can be viewed before you turn 18 by going to which of the following?

• www.annualcreditreport.com

• www.mycreditscore.com

• www.debtconsolidation.com

Which of the following have the ability to check up on how you spend your money and pay your bills ?

• banks and credit card companies

• insurance providers

• landlords

• potential employers

Banks and other busineeses check to see how you handle your money and manage your debt to determine if you are a good___________.

• Risk

• Subsidy

• Consumer

• Alibi

Why is it important to have good credit?

• You will get lower interest rates

• You will save money

• You prove you are a good risk

• You prove you are reliable

• All of the above are true

If Jen is paying a 4% interest rate and Bill is paying a 15% interest rate on a %10,000 loan, who will end up paying a lot LESS by the time the loan is paid off?

• Jen

• Bill