WorksheetsAll Things CREDIT!
Total questions: 46
Worksheet time: 41mins
Name
Class
Date
1.
What is credit?
a)
Money allocated to a specific account for future use by the consumer without borrowing
b)
Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date
c)
The ability and willingness of an individual to pay back a loan as perceived by the lender
d)
An individual’s character, capital, capacity, collateral and conditions
2.
What is one characteristic of open-end credit?
a)
A down payment must be made before receiving the loan
b)
Individuals are allowed to borrow an unlimited amount of money as long as they pay it back
c)
Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired
d)
Payments are equal and are required on a regular basis
3.
Amount charged if your payment is received after the billing date
a)
late payment fee
b)
overdue fee
c)
withdrawal fee
d)
loser fee
4.
Maximum amount you are allowed to carry as a balance on the card
a)
interest
b)
ARP
c)
credit line
d)
all of these
5.
This is a fee that some, but not all, credit card issuers charge to use their credit card.
a)
APR
b)
annual fee
c)
monthly fee
d)
no such thing
6.
Benefits of credit cards include:
a)
safe and convenient, bonuses are offered
b)
allows you to build a positive credit report
c)
needed for reservations and online shopping
d)
all of these
7.
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
8.
Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.
a)
true
b)
false
9.
The rate at which interest is charged on a credit card acount is expressed in terms of its:
a)
Annual Percentile Reduction
b)
Animal Population Rescue
c)
Annual Popsicle Reduction
d)
Annual Percentage Rate
10.
Which one is considered dangers of credit card
a)
no cash needed
b)
lead to over spending
11.
A plastic card that you use to access a line of pre-established credit is called:
a)
debit card
b)
credit card
c)
visa
d)
mastercard
12.
Your credit score is not configured off of which of the following:
a)
Payment history
b)
Amount owed
c)
GPA
d)
Length of credit history
13.
All of the following are examples of benefits of credit, EXCEPT:
a)
Increase your standards of living
b)
Safer than cash
c)
Buying power
d)
Can tie up future income
14.
Which one is a disadvantage of having a credit card?
a)
no cash needed
b)
build your history
c)
could ruin credit history
15.
Which one is NOT a benefit of having a credit card?
a)
raises standard of living
b)
convenient
c)
interest
d)
increase financial options
16.
It is wise to compare credit card offers before choosing one
a)
True
b)
False
17.
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
18.
What does APR stand for?
a)
American Peoples Reports
b)
Annual Progress Report
c)
American Percentage Rate
d)
Annual Percentage Rate
19.
Transferring debt from one credit card to another to known as:
a)
Penalty APR
b)
Balance Transfer
c)
Credit Limit
d)
Over the limit fee
20.
A yearly fee that may be charged for having a credit card is known as:
a)
Annual Fee
b)
APR
c)
Introductory Fee
d)
Credit Limit
21.
Paying the minimum payment on a credit card every month will:
a)
Pay a large percentage of the total balance owed every month
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 of a credit card in a decent amount of time
d)
allow the cardholder to avoid paying any interest charges
22.
Tyler is trying to be responsible in using his new credit card and has heard there is a way to avoidpaying interest on the things he charges. How can he LEGALLY avoid paying interest when using hiscredit card?
a)
Tyler needs to make sure he pays the minimum balance every month before the due date on the credit card statement.
b)
Tyler needs to pay the credit card balance in full every month before the due date listed on the credit card statement.
c)
Tyler needs to limit the use of his credit cards to balance transfers only.
23.
Credit card offers have all their terms put into a box. This box is known as a:
a)
Scam Box
b)
Informational Box
c)
Schumer Box
24.
A record of a person's credit history that includes information about credit cards as well as the use of other types of credit and loans
a)
Credit Report
b)
Credit Score
c)
Credit Card
d)
Introductory Rate
25.
A withdrawal of cash from your credit card
a)
Cash Advance
b)
Borrower
c)
Credit Report
d)
Debit Card
26.
No matter what your balance is, the smallest amount of interest that can be charged each month unless you have a zero balance
a)
Minimum Interest Charge
b)
Maintenance Fee
c)
APR
d)
Credit Report
27.
Amount of money borrowed
a)
lien
b)
collateral
c)
interest
d)
principal
28.
Money charged by the lender for the amount borrowed, expressed as an annual percentage.
a)
Interest rate
b)
collateral
c)
principal
d)
loan
29.
Amount of time allotted for repayment of a loan
a)
Collateral
b)
Term
c)
Daylight savings time
d)
repossession
30.
Credit backed by collateral
a)
secured credit
b)
unsecured credit
c)
credit card
d)
lien
31.
A line of credit established in advance so the borrower does not have to apply for credit each time new credit is desired.
a)
open-end credit
b)
closed-end credit
c)
payday loan
d)
rent-to-own loan
32.
A loan which the borrower must repay the amount in a specified number of equal payments.
a)
open-end credit
b)
closed-end credit
c)
payday loan
d)
rent-to-own loan
33.
Tangible items leased with the condition that the item will be owned by the renter if the term of rent (contract) is completed.
a)
open-end credit
b)
closed-end credit
c)
payday loan
d)
rent-to-own loan
34.
A loan based on the value of personal property.
a)
pawn loan
b)
title loan
c)
refund loan
d)
payday loan
35.
The borrower gives the lender his/her automobile title in exchange for a set amount of cash.
a)
pawn loan
b)
title loan
c)
refund loan
d)
payday loan
36.
All lenders check a person's credit report and score during the loan approval process.
a)
true
b)
false
37.
An example of closed-end credit is a secure credit card.
a)
true
b)
false
38.
If an individual does not meet the credit terms for a pawn loan, the lender will keep the property.
a)
true
b)
false
39.
When borrowing, individuals are spending their ____________ income because they are committing to making payments.
a)
present
b)
future
c)
extra
d)
whole
40.
Which of the following is NOT a way to build your credit from scratch?
a)
Secured Credit Card
b)
Major Credit Card
c)
Credit Builder Loan
d)
Retail Store Card
41.
The following is a characteristic of which type of credit: You have to deposit money into an account before you can use it as credit.
a)
Secured Credit Card
b)
Credit Builder Loan
c)
Retail Store Card
42.
The following is a characteristic of which type of credit: A financial institution deposits money into an account for you before you can use it as credit.
a)
Secured Credit Card
b)
Credit Builder Loan
c)
Retail Store Card
43.
The following is a characteristic of which type of credit: Typically the easiest type of credit to obtain.
a)
Secured Credit Card
b)
Credit Builder Loan
c)
Retail Store Card
44.
Which financial institution is most likely to give you a credit builder loan?
a)
Secured Credit Card
b)
Credit Builder Loan
c)
Retail Score Card
45.
What website should you use to obtain your credit report and score?
a)
www.creditkarma.com
b)
www.annualcreditreport.com
c)
www.freecreditreport.com
46.
Experts advise keeping a balance no more than _____ % of your total credit limit.
a)
20
b)
30
c)
40
d)
50
100 %
