Loan and Credit Quiz

What is the main difference between a secured loan and an unsecured loan?

• A secured loan is for a shorter term than an unsecured loan.

• A secured loan has a higher interest rate than an unsecured loan.

• A secured loan is protected by collateral, while an unsecured loan is not.

• A secured loan is only for buying a house, while an unsecured loan is for other things.

What is a co-signer and what is the risk of being one?

• A co-signer is someone who helps you pay back your loan. The risk is that you will have to pay more money.

• A co-signer is someone who helps you understand loans. The risk is that you will not understand the loan.

• A co-signer is someone who helps you find a loan. The risk is that you will get a bad loan.

• A co-signer is someone who helps you get a loan by guaranteeing the loan. The risk is that your credit score can be affected if the borrower defaults on the loan.

What is the difference between a fixed interest rate and a variable interest rate?

• A fixed interest rate is lower than a variable interest rate.

• A fixed interest rate stays the same throughout the loan term, while a variable interest rate can change.

• A fixed interest rate is for short-term loans, while a variable interest rate is for long-term loans.

• A fixed interest rate is only for secured loans, while a variable interest rate is for unsecured loans.

What is the main reason why the speaker says payday loans are "kind of the worst"?

• Payday loans have very high interest rates.

• Payday loans are only for people with bad credit.

• Payday loans are hard to get.

• Payday loans are not available in all states.

What is a good example of collateral for a secured loan?

• A credit card.

• A car.

• A job.

• A good credit score.

What is the main benefit of having a good credit score?

• You can get a better job.

• You can get a lower interest rate on a loan.

• You can get a loan more easily.

• You can get a higher credit limit on your credit card.

What are the three major credit agencies that maintain credit reports?

• Experian, Transunion, and Equifax

• Equifax, FICO, and Transunion

• FICO, Experian, and Transunion

• Experian, Equifax, and FICO

What is the highest possible FICO score?

• 950

• 650

• 750

• 850

What percentage of your credit score is determined by your payment history?

• 15%

• 35%

• 10%

• 30%

What is a credit report?

• A number that shows how well you manage your money

• A list of all your credit accounts and payments

• A report that shows how much money you owe

• A document that shows your income