Credit Basics - S25TH

True or False. Alternative credit usually has lower interest rate and other terms that are good for the borrower.

• True
• False

True or False. Secured loans usually have less risk for the lender than unsecured loans.

• True
• False

If your loan is secured by some collateral, you can usually get:

• More money
• Longer payback
• Lower interest rates
• All of these
• None of these

True or False. For closed- ended loans, the date that the loan must be paid off in full is fixed.

• True
• False

Which of these is NOT a closed-end loan:

• Credit card
• Car loan
• Mortgage
• Student loan

True or False. Interest rates on student loans are low because there is collateral that secures the loan:

• True
• False

Payday lenders verify which of these things before loaning money:

• Employment
• Checking account
• Credit score
• Debts to other lenders

The loan amount for a Payday loan is $ _____ or less.

• 15
• 400
• 600
• 2 to 4
• 500

The time to pay back a Payday loan is typically about ____ weeks.

• 15
• 400
• 600
• 2 to 4
• 500

Which of these are reasons why borrowers often can't repay on time and have to keep rolling over or taking out new payday loans to cover the last loan:

• High fees
• Short terms
• Both of these
• Neither of these