Credit and Financial Literacy Quiz

When calculating a FICO score, which category impacts the score the MOST?

• Types of Credit Used

• Amount of New Credit

• Payment History & Total Debt

• The length of time you have lived at your current address

What is the maximum liability for a consumer if their credit card is stolen and used?

• $500

• $50

• $0 (always)

• 25% of the charges

What is "phishing"?

• Attempting to acquire sensitive info by masquerading as a trustworthy entity in an email

• Going through a neighbor's trash to find bank statements

• Recording a credit card number while a person is paying at a restaurant

• Stealing a physical wallet from a purse

Which type of bankruptcy is a "wage-earner plan" where you keep most of your property?

• Chapter 7

• Chapter 11

• Chapter 9

• Chapter 13

Which of the following is an example of "revolving credit"?

• A 30-year mortgage

• A Mastercard or VISA

• An auto loan from a credit union

• A student loan

What is the formula for calculating simple interest?

• Principal + Rate + Time

• (Principal / Rate) x Time

• Principal x Rate x Time

• Principal x (Rate / Time)

A court order that requires part of your paycheck to be deducted to repay a debt is called:

• Default

• Foreclosure

• Lien

• Garnishment

In the "5 Cs of Credit," which one refers to your net worth (assets minus liabilities)?

• Capital

• Character

• Capacity

• Collateral

How long does standard negative information (late payments) stay on your credit report?

• 3 years

• 7 years

• 10 years

• Permanently

Which type of credit generally has the LOWEST APR because it is less risky for the lender?

• Unsecured Credit

• Open-Ended Credit

• Secured Credit (backed by collateral)

• Cash Advances