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Worksheetscredit review
Total questions: 53
Worksheet time: 54mins
Name
Class
Date
1.
According to the Federal Truth in Lending Act, where must the terms and conditions of credit cards be posted?
a)
On the back of the credit card
b)
In the Schumer box
c)
On the credit card’s Web site only
d)
They do not need to be posted
2.
If a credit card is used properly, what benefits does it have for the cardholder?
a)
The cardholder will pay higher interest rates on other forms of credit
b)
The cardholder will develop a positive credit history
c)
The cardholder will develop a negative credit history
d)
There are no benefits for the cardholder
3.
According to the Federal Truth in Lending Act, where must the terms and conditions of credit cards be posted?
a)
On the back of the credit card
b)
In the Schumer box
c)
On the credit card’s Web site only
d)
They do not need to be posted
4.
When reviewing a credit card statement, what is the past due amount?
a)
The minimum amount to be paid
b)
The minimum payment due not paid by the due date
c)
The total amount owed to a credit card
d)
The charges assessed to the account for use
5.
Paying the minimum payment on a credit card every month will:
a)
pay a large percentage of the total balance
b)
make the final amount paid substantially higher than the amount initially charged to the card
c)
help the cardholder create a plan for paying off a credit card in a decent amount of time
d)
allow the cardholder to avoid paying any interest charges
6.
Becky no longer wants to use her Clothes-R-Us store credit card. What should she do with the credit card?
a)
File the credit card away for use at a later time
b)
Let a family member take over the credit account so her credit score is not affected
c)
Keep the credit card in her wallet
d)
Close the account by phone and in writing and cut up the card
7.
What is a safety tip to remember with credit cards?
a)
Throw away all credit card offers without opening them
b)
Keep a list of all cards, account numbers, and phone numbers separate from cards
c)
Loan your card only to those in your immediate family, since federal laws offer protection when a relative uses your card
d)
Open as many credit card accounts as possible
8.
Which of the following best describes a credit report?
a)
A summary of a consumer’s credit accounts and payments on those accounts
b)
A number that describes how likely a consumer is to handle credit in a responsible manner
c)
A summary of a consumer’s past addresses, past employment, and funds available in savings
d)
A record of all credit applications as well as medical information and legal proceedings
9.
Which of the following is NOT included in an individual’s credit report?
a)
Current and past addresses
b)
Employment history
c)
Bankruptcies and foreclosures
d)
Medical information
10.
What information is NOT included when calculating an individual’s credit score?
a)
Consumer’s payment history
b)
Consumer’s salary
c)
Consumer’s outstanding debt
d)
Consumer’s pursuit of new credit
11.
The best place for a consumer to acquire his/her credit report is at a:
a)
public library
b)
depository institution
c)
credit reporting agency
d)
municipal court
12.
Which would result in a consumer developing a negative credit history?
a)
Paying bills consistently and on time
b)
Applying for credit many times within a short period of time
c)
Having a criminal record
d)
Holding a low number of credit/store cards
13.
The interest or money that is charged a borrower for the use of credit is the _____.
a)
finance charge
b)
collateral
c)
proration
d)
all of these
14.
The amount borrowed is known as the ______.
a)
credit
b)
interest
c)
capital
d)
principal
15.
Credit that can be used again and again (as long as the balance owed does not exceed the limit) is called _________.
a)
installment
b)
open-ended
c)
closed-ended
d)
contract
16.
At which of the following will you probably get the lowest rate of interest for a consumer loan?
a)
Commercial bank
b)
Finance company
c)
Credit union
d)
Pawnbroker
17.
Why might someone file for bankruptcy?
a)
They just got a bank account
b)
Overspending
c)
Taking a shower
d)
None of the above
18.
What is a danger of credit?
a)
Can't lead to overspending
b)
Can tie up future income
c)
Non-convenient
d)
Can be safe in easy economic times
19.
Which of the following is a benefit of credit?
a)
Safer than cash
b)
Gives you records
c)
Builds credit history
d)
All of the above
20.
Some credit cards offer rewards throughout the year. Common reward offers include:
a)
Cash Back
b)
Gas Rewards
c)
Air Miles
d)
All answers are correct
21.
You cannot have a credit card without getting credit card debt.
a)
True
b)
False
22.
This is the date that the card will no longer be valid.
a)
Issue Date
b)
Expiration Date
c)
Termination Date
d)
Closing Date
23.
Money that you have to pay every year for using a credit card.
a)
Yearly Fee
b)
Anniversary Fee
c)
Annual Fee
d)
Term Fee
24.
What does APR stand for?
a)
Annual purchase rate
b)
Annual percentage rate
c)
Approximate payment rotation
d)
Authorization processing rate
25.
When do you have to pay a cash advance fee?
a)
When you move a balance from one card to another
b)
When you do not make your payments on time
c)
When you spend more than your limit on a card
d)
When you withdraw money from an ATM
26.
The maximum amount you may borrow on a credit card is known as:
a)
creditworthiness
b)
credit report
c)
credit limit
d)
variable rate of credit
27.
Examples of penalty fees include:
a)
over-the-limit fee
b)
late payment fee
c)
returned payment fee
d)
all of these
28.
To build a good credit history, you should
a)
pay the minimum or more on your account each month
b)
pay on time or early
c)
be careful not to take on too much debt
d)
all of these
29.
To build a good credit history, you should
a)
pay the minimum or more on your account each month
b)
pay on time or early
c)
be careful not to take on too much debt
d)
all of these
30.
Bankruptcies and non-payments stay on your credit report for 7-10 years.
a)
True
b)
False
31.
Credit can lead to overbuying in some instances.
a)
True
b)
False
32.
Which one is NOT a benefit of having a credit card?
a)
raises standard of living
b)
convenient
c)
interest
d)
increase financial options
33.
Pay later
a)
credit card
b)
debit card
c)
prepaid card
d)
none of these
34.
Amount charged if your payment is received after the billing date
a)
late payment fee
b)
overdue fee
c)
withdrawal fee
d)
loser fee
35.
Pay in advance
a)
credit card
b)
prepaid card
c)
debit card
d)
all of these
36.
Pay now
a)
credit card
b)
prepaid card
c)
debit card
d)
all of these
37.
Maximum amount you are allowed to carry as a balance on the card
a)
interest
b)
ARP
c)
credit line
d)
all of these
38.
What does PIN stand for?
a)
Personal Information Number
b)
Preferred Identification Number
c)
Private Identification Number
d)
Personal Identification Number
39.
Buy airline tickets to Hawaii
a)
debit card
b)
credit card
c)
either
d)
neither
40.
If a credit card is used properly, what benefits does it have for the cardholder?
a)
The cardholder will pay higher interest rates on other forms of credit
b)
The cardholder will develop a positive credit history
c)
The cardholder will develop a negative credit history
d)
There are no benefits for the cardholder
41.
Which of the following is listed on your credit report?
a)
Traffic Violations
b)
Amount of cash in your bank account
c)
Hourly wage
d)
Full name, social security, date of birth, current address
42.
If you have bad credit, it maybe ...
a)
harder to obtain a mortgage loan
b)
ok
c)
likely for you to get a better paying job
d)
easier to get a credit card
43.
A credit score of 800 is considered _____
a)
Poor
b)
Fair
c)
Good
d)
Amazing
44.
Is the type of car that you drive listed on your credit report?
a)
Yes
b)
No
45.
My credit history does not affect my chances for renting my first apartment.
a)
True
b)
False
46.
The more credit cards I have, the higher my credit score will be.
a)
True
b)
False
47.
Telephone and utility companies may use information in your credit report to decide whether to provide services to you.
a)
True
b)
False
48.
______________ is the amount of money you pay to use someone else's money.
a)
Interest
b)
Credit
c)
Principal
d)
Term
49.
What is the first step in establishing credit?
a)
Get a credit card or small loan.
b)
Pay bills on time.
c)
Creditors submit positive information about accounts in good standing.
d)
Pay lower interest on borrowed money.
50.
Which one of the following is not included on a credit report?
a)
Date of birth
b)
Current address
c)
Previous address
d)
Medical records
51.
What are the largest Credit Reporting Bureaus?
a)
Experian, Transfact, and Equifax
b)
Experian, Equiscore, and Transunion
c)
Experian, Transtation, and Equinote
d)
Experian, Transunion, and Equifax
52.
Karl
2 years at current job
4 late payments last year
3 collections
Debt-to-income ratio is 48.9%
What is his credit score?
2 years at current job
4 late payments last year
3 collections
Debt-to-income ratio is 48.9%
What is his credit score?
a)
431
b)
650
c)
750
d)
900
53.
Regina
12 years at current job
No late payments
Debt-to-income ratio is 28%
Applied for credit 2 times in the last two years
12 years at current job
No late payments
Debt-to-income ratio is 28%
Applied for credit 2 times in the last two years
a)
805
b)
650
c)
500
d)
350
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