CREDIT FINAL

What should you do if you can’t pay your credit card bill?

• Ignore it and hope it goes away.
• Call the credit card company to discuss payment options.
• Use another credit card to pay it.
• Change your name and move to Pocatello, Idaho.

What is the best way to use a credit card responsibly?

• Only buy things you can afford to pay back.
• Use it to buy as much as you want.
• Never pay the bill and keep borrowing money.
• Use as much credit as you can to increase our credit score.

Which best describes the difference between secured and unsecured loans?

• Secured loans require collateral, while unsecured loans do not.
• Secured loans have a higher interest rate than unsecured loans.
• Secured loans are only available to individuals with good credit, while unsecured loans are available to anyone.
• Secured loans do not require a credit check, but unsecured loans do.

Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?

• Unsecured loan
• Auto loan
• Secured loan
• Payday loan

Which type of financial aid is considered free money?

• Loans
• Grants
• Work-study
• Scholarships

What is the main benefit of taking out a federal student loan instead of a private loan?

• Federal student loans offer lower interest rates and more flexible repayment options.
• Federal student loans do not need to be repaid after graduation.
• Federal student loans offer more money than private loans.
• You will have a higher interest rate for a federal student loan.

What is the best way to stay out of debt?

• Continuously take out personal loans to cover expenses.
• Rely on credit cards for all of your purchases and pay them off at the end of the month.
• Spend only what you can afford and avoid using credit cards for unnecessary purchases.
• Borrow money from friends and family whenever you need it.

Which of the following types of credit typically has the LOWEST interest rate?

• Payday Loan
• Auto Loan
• Buy Now, Pay Later
• Credit Cards
• Mortgage

All of the following are ways to build your credit EXCEPT?

• Use a co-signer
• Become an authorized user
• Get credit for the bills you pay
• Practice good credit habits
• Use cash or debit and avoid credit

The average APR for a payday loan is closest to …

• 4%
• 14%
• 40%
• 400%