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WorksheetsCredit 16-31
Total questions: 29
Worksheet time: 15mins
What is a credit limit?
The required payment to your credit card company.
The amount of interest you are charged each month.
The maximum amount you can charge each billing cycle.
How many credit cards an individual can own.
If a credit card is used properly, what benefits does it have for the cardholder?
The cardholder will pay higher interest rates on other forms of credit.
The cardholder will develop a positive credit history.
The cardholder will develop a negative credit history.
There are no benefits for the cardholder.
What does a high credit rating score indicate?
The individual is likely to pay his bills.
The individual is more likely to carry debt.
The individual is more likely to cancel his credit card and seek a better deal.
The individual will likely default on the loan.
Which of the following is NOT true of credit scores?
Only the credit bureaus truly know how credit scores are calculated.
Having a high score means you are likely to repay your debts.
The more money you make, the higher your score.
Your credit score can impact the car, or home, you buy.
A bad credit rating can not only affect your ability to get a loan, it can also impact which of the following?
Getting an insurance policy.
Renting an apartment.
Being hired for a job.
All of the above.
Which of the following actions has NO impact on your credit score?
You inquire about a credit card charge.
You use a large percentage of your credit limit.
You opened several new credit cards last week.
You send in your credit card payment a few days late
What access do consumers have to their credit reports?
Every American is entitled to one free credit report per year.
Only financial institutions have access to credit reports.
They only have access when a third party requests a copy.
Three free credit reports per year, but from different credit-reporting agencies.
What is the best way to establish a good credit rating?
Get your parents to co-sign on all loans.
Move into an apartment to establish a permanent address.
Apply for several loans through different banks.
Pay your bills on time.
Which of the following should a young adult consider when applying for a credit card?
The annual percentage rate.
Whether the card has an annual fee or penalty fees.
A conversation with their parents/guardians to go over the fine print of the contract.
All of the above.
Which of the following is not a fee associated with credit cards?
balance transfer fee
cash advance fee
over the limit fee
origination fee
If an individual has multiple credit cards with balances, they should
pay an equal amount per month on all of the cards.
focus on paying off the one with the highest interest rate first.
focus on paying off the one with the lowest interest rate first.
pay off the card with the highest balance first.
What's your history of paying back credit cards?
A charge of not only the interest but other charges as well such as transaction fees
Credit Card
Installment Loan
Mortgage
Finance Charge
Credit cards offer
Regular
Revolving credit
Adjusted
Average Daily
Fail to pay back a loan
Default
Late fee
Credit
Interest
Type of loan in which someone uses the equity in his/her home as collateral
mortgage loan
Home equity loan
co-signed loan
consolidation loan
Is a Credit card company that issues credit cards a bank?
Yes
No
