Chapter 14- Credit & Borrowing

First Name:

Last Name:

Period:

• 3rd
• 5th

1. Each of the following financial products will help you build a credit history EXCEPT...

• Secured credit card
• Default (not paying) on your credit cards
• Auto loan
• Credit card

2. What financial product am I? I am a type of credit card that requires cardholders to make a security deposit equal to the credit limit on their account.

• Standard credit card
• Secured credit card
• Overdraft credit card
• Rewards credit card

3. When you are borrowing money, what is the principal?

• The amount of time you have to pay it back.
• The rate at which you borrowed.
• The amount of money you are borrowing.

4. What are three ways a young adult (under 21) can gain access to a credit card?

• Your own credit card, unsecured account, secured credit card
• Your parents' account, your own account with cosigner, and secured credit card
• Your parents' account as cosigner, your own account, unsecured account

5. What are four primary types of credit?

• Student Loans, Credit Loans, Mortgages, Vehicle Maintenance
• Student Mortgage, Reverse Mortgage, Vehicle Mortgage, Car Mortgage
• Student Loans, Car Mortgages, Mortgage Loan, Credit Card
• Student Loans, Mortgages, Car Loan, Credit Cards

6. What are the two most important factors in calculating your credit score?

• Payment history and types of credit
• Amounts owed and length of credit history
• Payment history and credit utilization
• Length of credit history and new credit inquiries

7. Which of the following is not one of the major credit bureaus that provide access to your credit report and credit score?

• Equifax
• TransUnion
• FaxEqual
• Experian