Credit and Debt

Which of the following is NOT a recommended method to protect you from identity theft?

• Expensive specialty locking or monitoring service.

• Place a credit freeze with the credit bureaus.

• Regularly monitoring your credit report.

• Contacting lenders and credit bureaus to report inaccurate information.

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when

• Choosing a financial advisor

• Choosing a credit card

• Looking at your credit score

• Selecting a financial institution

What option will NOT be available if you are behind on loan payments?

• A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

• You can borrow money from friends and family.

• You can ask to get out of your loan.

• Your financial institution might allow you to defer the loan but you'll have to pay the interest.

Which item is important to consider when selecting a credit card?

• Annual Percentage Rate (APR)

• Fees

• The look of the credit card

• Both APR and fees

Credit cards can help

• Build credit history.

• Act as a form of identification

• Lower your debt

• Balance your checking account

The cost of a secured loan is typically lower than the cost of an unsecured loan because

• It requires collateral.

• The loan takes longer to get.

• It has high interest rates.

• Your parents will make sure you pay it back.

Which is a positive reason for using a credit card to finance purchases?

• You will get charged high interest.

• Paying it off on time can help build your credit history.

• You won't have to budget for your credit card expenses.

• You'll be able to spend a lot of money without paying it back

Which of the following will help you protect yourself from identity theft and fraud?

• Regularly monitor your credit report.

• Contact lenders and credit bureaus to address incorrect information.

• Freeze your credit.

• All of the above.

Secured loans are less costly than unsecured loans because

• They usually have a lower interest rate.

• They require collateral.

• They are less risky for the financial institution.

• All of these are true.

What could be a good option available to you if you are behind on loan payments?

• A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

• You can ignore your payments until the financial institution asks about them.

• You can take out a payday loan.

• Ask your financial institution to get out of the loan contract.