Marina's Car Purchase Quiz

What is another name for a credit score?

• FICO score

• Loan score

• Payment score

• Debt score

What can lower a credit score?

• Making early payments

• Declaring bankruptcy

• Paying off loans

• Increasing savings

What is the significance of a down payment?

• It reduces the total loan amount.

• It increases the interest rate.

• It extends the loan term.

• It is optional for all purchases.

What is the interest rate offered by the dealer for Marina's car loan?

• 6%

• 7%

• 8%

• 8.2%

Why is APR considered a more accurate way of figuring out the interest rate for a loan?

• It includes the principal amount

• It includes any up-front fees

• It excludes taxes

• It excludes interest

What is interest in the context of a car loan?

• A fixed amount paid monthly

• A percentage of the loan balance

• A one-time fee

• A penalty for late payment

What is required if a person has no credit history or a poor credit history?

• A higher interest rate

• A larger down payment

• A cosigner with better credit

• A longer loan term

What must a cosigner do if the other signer defaults?

• Negotiate a new loan

• Repay the loan

• Transfer the loan

• Cancel the loan

What is the main topic of the document?

• Car maintenance

• Understanding loan terms

• Car insurance

• Vehicle registration

What does the dealer require from Marina to finance her car?

• A higher interest rate

• A cosigner

• A larger down payment

• A shorter loan term