Font size
WorksheetsCredit
Total questions: 61
Worksheet time: 5hrs 5mins
What is debt?
Another word for death
Something, typically money, that is owed or due
A loan on which you do not have to pay interest
That which is incurred during childhood and consummated in college
What is a credit card?
The ace of diamonds
A large plastic card designed to ruin consumer's finances
A small plastic card issued by the government attached to a line of credit
A small plastic card issued by a bank and attached to a line of credit
An amount of credit extended to a borrower is known as a...?
Line of Extension
Several dollars lined up in a straight line
Available Credit
In the finance world it is referred to as a "long nose"
Revolving credit is...
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
a spinning door with money in it
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
Which of the following is not a characteristic of an installment loan?
repaid over time
scheduled payments
accompanied by an interest rate
also known as a revolving loan
Which of the following is not a characteristic of an installment loan?
repaid over time
scheduled payments
accompanied by an interest rate
also known as a revolving loan
What is a credit score?
a number between 300 and 850 representing your creditworthiness
a statistical number that evaluates a consumer's creditworthiness and is based on credit history.
Often referred to as a FICO score
All of the above
What is an interest rate?
it is your level of interest about a certain topic expressed as a percentage of your total interest
The amount in terms of dollars that you have to pay back on a purchase
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
The process of collecting funds that are owed and past due is called...
gathering
dollar collecting
overdrafting
collections
What are the qualities of a charge-off account
the declaration by a creditor (usually a credit card) that an amount of debt is unlikely to be collected
the point at which a financial institution reports poor credit performance to a credit bureau
the point at which an account that has not been paid has a negative impact on your credit score
all of the above
What is bankruptcy?
A point in time where everything a person owns has been given to charity
A legal proceeding involving a person or business that is unable to repay outstanding debts in which the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt
When a bank is built on top of a volcano and the volcano erupts causing a bank(e)ruptcy
A legal proceeding involving a person or business that is more than capable of repaying outstanding debts in which all of the debtor's assets are measured and evaluated, and then given away to those in need
What is a loan term?
The amount of time a revolving line of credit can be open
The payment of income to a savings account in regular payments over a set period of time.
The period in which the loan is to be repaid, each payment broken down into individual installments
Specifically related to the black market for human organs, and typically meant as the length of time one's kidney will be used for other purposes
A simple definition of credit could be stated as...
Buy now, pay now
Buy later, pay later
Buy later, pay now
Buy now, pay later
What is unique about an unsecured loan?
Require no collateral
Require collateral
Interest free
Don't affect your credit score
What is the best interest rate to get on a credit card?
1%
5.6%
30%
0%
How many kids do the Bradley's have?
0
1
2
3
What is the name of the book that Jean Chatzky wrote?
Girl, Get Your Money Straight
Girl, Credit is Cool
Pay it Down
I Like Oprah
What is the name of the book that Jean Chatzky wrote?
Girl, Get Your Money Straight
Girl, Credit is Cool
Pay it Down
I Like Oprah
Which family from Oprah's Debt Diet had the most trouble with credit cards?
The Bradley's
The Eggleston's
The Widlund's
The Simpson's
Jean Chatzky said you have to do something how many times for it to become a habit?
10
15
21
50
How much did the Bradley's spend on takeout(food) each day?
$25
$50
$75
$100
How much did the Bradley's spend on takeout(food) each day?
$25
$50
$75
$100
Which of the following situations is an example of responsibly taking on debt?
Get a credit card but don't use it to avoid more debt
Spend up to your credit limit each month
Become an authorized user on an adult's card
Make only the minimum payment each month
How can you build a positive credit history as a college student?
Get a credit card but don't use it to avoid more debt
Spend up to your credit limit each month
Become an authorized user on an adult's card
Make only the minimum payment each month
Your net worth...
is what you owe minus what you own
is your assets - your liabilities
is your liabilities - your assets
is what you own minus what you owe
T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.
True
False
Which of the following is TRUE about a credit report?
It is a complete history of one type of credit you have
Credit reports are maintained by the 5 main credit bureaus
You can get a copy of your credit report for free
You can get a credit report only when you're 21 years old
Which of the following does NOT contribute to your credit score?
Your payment history
Which banks issued your credit cards
Your debt-to-credit ratio
Length of credit history
All of the following are benefits of having a good credit score EXCEPT
You can get a higher return on your Retirement fund
Higher interest rate on credit cards and loans
Easier approval for rental apartments and houses
Better car insurance rates Better car insurance rates
Which of the following is TRUE about finding errors on your credit report?
You may have to file a dispute with each credit bureau
You should wait until the end of the month before reporting
Finding errors is common & is not a big deal
Overlooked errors may result in you paying a fine
Aisha wants to improve her credit utilization rate. Which of the following can she do?
Make several payments in the month instead of a large one
Spread her spending among her 3 credit cards
Keep her credit utilization rate to 55%
Keep her spending all to 1 card; don't use the other 2
Why might someone have a thin file?
They've had multiple lines of credit open for 15 years
They only have 4 types of credit open
The credit bureaus mistakenly think you have passed away
You are relatively new to establishing credit
Why might someone have a thin file?
They've had multiple lines of credit open for 15 years
They only have 4 types of credit open
The credit bureaus mistakenly think you have passed away
You are relatively new to establishing credit
How are a credit score and credit report related?
A credit report is determined by the factors in your score
A credit score is determined by the factors in your report
Credit reports are less important than your credit score
They're not related at all
Where can you get a free copy of your credit report?
annualcreditreport.com
freecreditreport.com
getmycreditreport.com
creditreport.gov
Where can you get a free copy of your credit report?
annualcreditreport.com
freecreditreport.com
getmycreditreport.com
creditreport.gov
Q13:Using the debt snowball method, you make...
minimum payments on all of your loans
one large payment on one loan
minimum payments on small loans; pay extra on large loans
minimum payments on large loans; pay extra on small loans
How can having a thin file impact you?
You are likely to get lower interest rates on your loans
You may be offered new lines of credit in the mail
Lenders may decline your application for a loan
Most landlords will approve you to rent an apartment or home
Using the High Rate Method, you...
pay off all your loans in the least amount of time
put extra money towards loans with the lowest interest rate
put extra money towards loans with the highest interest rate
make one large payment on the loan with the highest rate
Which types of debt usually CANNOT be erased or reduced?
Federal student loans
Credit card debt
Medical bills
None of these types of debt can be erased or reduced
What can debt collectors do if you don't make payments towards your loans?
Have you arrested if you owe money
They can try contacting you at work
Call you between 8am-9pm to talk to you about your loans
Reach out to your friends about the debt you owe
What information can you find on a credit report?
Your medical insurance information
Your parents' and siblings' contact information
Your education level
Inquiries you've made on new lines of credit
All of the following may access your credit report EXCEPT...
A landlord
A future employer
Colleges and universities
Insurance companies Insurance companies
All of the following may access your credit report EXCEPT...
A landlord
A future employer
Colleges and universities
Insurance companies Insurance companies
Jim is 23 and has 1 credit card. What would be the best way to improve his credit score?
Get 4 more credit cards in the next 3 months
Diversify his credit - get an loan for the car he needs
Make sure he makes his payments in full & on time
Increase his credit utilization rate
