U2 - Credit

What is a disadvantage of credit related to spending?

• It encourages saving

• It leads to overspending

• It reduces debt

• It eliminates fees

Why is buying on credit not free?

• Because it involves no interest

• Because it includes fees and interest

• Because it is a gift

• Because it is a reward

What is a potential risk of using credit cards?

• Guaranteed savings

• Identity theft

• Increased cash flow

• Reduced expenses

What is a benefit of credit during emergencies?

• It prevents all expenses

• It provides instant cash

• It reduces interest rates

• It eliminates debt

What does a credit score represent?

• Your annual income

• Your credit risk as a three-digit number

• Your total debt amount

• Your monthly savings

What is included in the inquiries section of a credit report?

• Your employment history

• List of anyone who accessed your credit report

• Your annual income

• Your monthly expenses

Which of the following is NOT a credit reporting agency?

• Equifax

• TransUnion

• Experian

• FICO

What does the 'Types of Credit in Use' category include?

• Student loans, mortgages, credit cards

• Savings accounts, checking accounts

• Investment portfolios, stocks

• Cash transactions, wire transfers

What is the impact of the 'Total Amount You Owe' category on your credit score?

• 30%

• 50%

• 10%

• 5%

What is the role of credit inquiries in your credit score?

• 10%

• 20%

• 5%

• 15%