3.6 Understanding Credit Scores and Loan Terms

What are students expected to identify regarding credit scores?

• The history of credit scores

• The key factors that influence credit scores

• The benefits of high credit scores

• The disadvantages of low credit scores

What should students understand about loan terms?

• How loan terms affect total payments

• How to apply for a loan

• The history of loans

• The benefits of short-term loans

What are the components of loan terms mentioned in the objectives?

• Loan amount and fees

• Interest rates and loan length

• Credit score and income

• Down payment and insurance

What factors are considered in calculating the total cost of a car loan?

• Credit score and loan terms

• Loan amount and fees

• Down payment and insurance

• Monthly income and expenses

Which credit score range is labeled as "Bad"?

• A) 300-629

• B) 630-689

• C) 690-719

• D) 720-850

What is the purpose of a credit score?

• A) To show how much money you have

• B) To show how responsible you are with borrowing money

• C) To show your favorite hobbies

• D) To show your age

What is the lowest credit score range mentioned?

• A) 300-629

• B) 630-689

• C) 690-719

• D) 720-850

What is used to calculate a credit score?

• Your shoe size

• Your credit history

• Your favorite food

• Your height

Which of the following is NOT used to calculate a credit score?

• Your payment history

• The amount of debt you have

• Your favorite color

• The length of your credit history

What does a longer credit history usually mean for your credit score?

• It has no effect

• It can improve your credit score

• It makes you taller

• It changes your favorite color