Borrowing Money - Key Responsibilities

What can paying late lead to?

• A) Late fees, higher interest rates, and a drop in your credit score

• B) Lower interest rates

• C) Better credit score

What is a good habit to ensure you never miss a due date?

• Set reminders or use automatic payments

• Ignore due dates

• Rely on memory alone

• Wait until the last minute

What should you always ask about your loans?

• A) How much can I borrow?

• B) How much will I pay back total?

Before borrowing, what should you make sure of regarding your monthly income?

• Make sure your monthly income can handle the loan payments

• Ensure your monthly income is less than your expenses

• Ignore your monthly income when considering a loan

• Make sure your monthly income is only from one source

What are the benefits of maintaining good credit?

• A) Better interest rates, more borrowing options, and better job or apartment opportunities

• B) Higher interest rates

• C) Fewer borrowing options

What must you do when you borrow money?

• Sign a legal contract

• Ignore the terms

• Pay immediately

• None of the above

Which of the following is included in loan terms?

• Payment amount

• Due dates

• Interest rate

• All of the above

Breaking the loan terms can result in _______.

What is considered fraud when applying for a loan or credit card?

• Providing truthful information

• Lying about your income

• Paying on time

• None of the above

What does 'Default' mean?

• Making regular payments

• Stopping payments completely

• Increasing payments

• Reducing payments