Credit Literacy Review

Which of the following is an advantage of using credit?

• interest and fees

• purchasing power

• finance charges

• overspending

What term means how trusted you are to repay borrowed money?

• open-end credit

• credit risk

• creditworthiness

• FICO

Which of these is not a part of your credit score?

• length of credit history

• payment history

• total amount that you owe

• high school grades

If you have a good credit score, you are more likely to be offered:

• a job over another candidate

• loans with better terms

• low rates on car insurance

• all of the above

An agreement to receive a service now and pay for it later

• service credit

• open-end credit

• closed-end credit

• credit report

After paying off the balance, which type of credit remains open to be used again?

• open-end credit

• service credit

• closed-end credit

• finance charged credit

Having good credit means you are a low-risk borrower.

• True

• False

A credit score is also known as a FICO score.

• True

• False

Creating many new credit accounts will improve your credit score.

• True

• False

Your credit score is a point value of how well you have handled credit in the past, and how you may handle credit in the future.

• True

• False