Introduction to Credit - Final Assessment

Which of the following defines credit?

• Yearly membership or participation fees

• Fees for getting cash advances

• The ability to acquire money, goods or services from others without immediate payment

• Loans which will be in repayment for less than an 18 month time period

What type of loan would one need to buy a house?

• Short-term

• Intermediate

• Long-term

• None of the above

Which of the following is NOT a source of credit?

• Checking accounts

• Mortgage companies

• Credit unions

• Credit card companies

Which of the following defines APR?

• Yearly membership or participation fees

• A measure of the cost of credit, expressed as a yearly rate

• Loans which will be in repayment for less than an 18 month time period

• Fees for getting cash advances

FICO stands for Fair Isaac Corporation.

• True

• False

You are entitled to a free copy of your credit report twice a year.

• True

• False

What is the highest credit score number?

• 750

• 800

• 850

• 900

Errors on a credit report are easy to fix.

• A.True

• B.False

Which type of loan will be in repayment for more than 10 years?

• Timely loans

• Intermediate-term loans

• Long-term loans

• Large lump loans

Your credit rating is a number calculated by using information on a credit report which shows lenders the risk they take by loaning money to you.

• True

• False