Financial Literacy Quiz

A credit report is used by potential lenders (company or bank you want to loan you money) to decide whether or not to loan you money.

• TRUE

• FALSE

Which of the following would you find on someone's credit report?

• The number of credit cards the person has.

• A purchase made in cash from Best Buy.

• How many children the person has.

What factor counts the most in determining your credit score (grade that predicts how likely you are to repay borrowed money)?

• the type of car you drive

• how much money your parents make per year

• payment history (if / when you paid back the money you borrowed for different loans)

A negative (bad) remark on your credit report, such as late payments or your account being sent to a debt collection company, can remain (stay) on your credit report for long?

• 6 months - 2 years

• 7 - 10 years

• forever

Which card takes money directly from your checking (bank) account? It is like taking money for your piggy bank.

• 
• 
• BOTH

Which card would you use to buy something now but pay for it later?

• 
• 
• BOTH

For which card do you have to pay interest (extra money) for money that you borrow?

• 
• 
• BOTH

Which card allows you to buy goods and services (examples: shoes and a haircut)?

• 
• 
• BOTH

Why is it important to have a good credit score?

MARK ALL CORRECT ANSWERS (MORE THAN ONE).

• To get a loan to buy a house.

• Potential employers may ask to see your credit report to decide if they will hire you.

• To get a loan to buy a car.

• To rent a house or apartment.

Which information would NOT be included on a credit report?

• Late payments

• Car loan

• Purchases made with cash