S2 PEP - Borrowing money quiz

How can you check how much money you have in your current account?

There are multiple answers to this question!

• Via an ATM/ cashpoint

• Visiting your bank/building society branch

• Logging on to online banking

• Via a mobile banking ap

What is the term used to describe your bank account if the balance drops below £0?

• Under-balance

• Over-balance

• Overdraft

• Bank draft

Which of the following forms of borrowing do you think has the highest risk associated with it?

• Loan shark

• Mortgage

• Credit card

• Payday loan

What does the term Annual Percentage Rate mean in relation to a credit card?

• The minimum you must repay on the total amount you owe

• The percentage of your annual income that you must use to repay credit card debts

• The interest rate you pay for borrowing money

• The amount you can borrow over a year without paying interest

Why is your credit rating important?

There are multiple answers to this question!

• Lenders will consider your rating when deciding on whether to lend you money

• It can impact on the interest rates lenders set for you

• Your rating can affect how likely banks and building societies are to give you a mortgage to buy a house

• It lasts for six years

Which of the following can have a negative impact on your credit rating?

• Having a credit card

• Paying your mobile phone bill by Direct Debit

• Living at the same address for a long time

• Missed payments on a credit card

Which of these is the most important utility bill to prioritise if you are in financial difficulties (pay first)?

• Council tax

• Broadband – telephone/ internet

• Water

• Digital TV package

How much is an annual colour TV licence to watch live or recorded TV?

• Under £50

• Between £50 and £100

• Between £100 and £200

• Over £200

What’s the lowest interest you can get on a credit card?

• 0.5%

• 0%

• 1%

• 3%