Credit Score Quiz

What is one factor that can give you a higher credit score?

• Making late payments

• Having a high amount of debt

• Payments on time

• Ignoring credit reports

How does a higher credit score affect loan interest rates?

• Increases interest rates

• Has no effect on interest rates

• Lowers interest rates

• Makes loans unavailable

What is the credit score range considered as "Good"?

• 300-579

• 580-669

• 670-739

• 800-850

What is a secured loan?

• A loan that requires no collateral

• A loan with a higher interest rate

• A business or personal loan that requires some type of collateral

• A loan that is only for businesses

Why do secured loans usually have a lower interest rate than unsecured loans?

• Because they are riskier for the bank

• Because the bank knows you have collateral they can take

• Because they are only for short-term borrowing

• Because they are only for large amounts

What happens if you do not make your payments on a secured loan?

• Bankruptcy

• Foreclosure

• Increased interest rates

• Loan forgiveness

What is one advantage of having a mortgage loan?

• Paying rent to someone else

• Building equity in the home

• Higher interest rates

• No need for a down payment

Why might a fixed interest rate be considered safer?

• It can fluctuate with the market

• It is always lower than variable rates

• It remains constant over time

• It is determined by the homeowner

What is a characteristic of a variable interest rate?

• It is always lower than a fixed rate

• It can be lower but also higher

• It never changes

• It is set by the government

Which of the following is an advantage of using credit cards?

• High interest rates

• Rewards such as cash back and airline miles

• Limited consumer protections

• Immediate payment requirement