WorksheetsCredit
Total questions: 80
Worksheet time: 41mins
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
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
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
The process of collecting funds that are owed and past due is called...
gathering
dollar collecting
overdrafting
collections
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
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
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
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
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
An example of a financial institution is:
A department store
A bank
A school
An ATM machine
Online banking is an electronic way to view account activity and pay bills via the internet and an institution's website.
True
False
A debit card allows for an immediate electronic transfer of money from a cardholder's savings or checking account.
True
False
A debit card is essentially a paper check but doesn't require the processing time a check does.
True
False
A debit card is handy in an emergency when you don't have the money to spend.
True
False
Lenders use credit agencies to determine:
An applicant's credit score
An applicant's credit history
Whether an applicant has any outstanding debt or defaults
All of the above
Which is a disadvantage of a credit card?
Credit cards are buy-now, pay later
Credit cards provide preapproved credit
Credit cards charge interest
Credit cards are the best way to pay for something online, because you can dispute a the charge
The lower an applicant's credit score, the lower the risk to the lender.
True
False
Identity theft is a threat to anyone with a good credit rating.
True
False
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
A creditor is a person who owes you money.
True
False
What is unique about an unsecured loan?
Require no collateral
Require collateral
Interest free
Don't affect your credit score
What do you do with a store credit (Kohl's, JC Penny, etc.) card you no longer want to use?
Close the account by phone and in writing and destroy the card
Let someone else use the card since they have bad credit and can't get a card of their own
Keep it to use as an identification card
File the card away in a safe place.
How can you develop a positive credit history?
Use only one type of credit account
Pay cash for almost everything
Open credit cards in your parents names
Maintain a resonable amount of available credit
Which is a good definition of borrowing
Borrowing is an important part of a responsible financial plan
When you are borrowing, you are spending future income
Borrowing strongly affects the present self but has less impact on future self.
Borrowing builds a strong credit history because it requires indivisuals to file a credit report.
If you are 16 can you get a credit card
Yes, with your parents permission
No you must be 18 and have a co-signer
No you must be 25 years old
Yes, if she has a job
What are safe boundaries with credit?
Total amount of money borrowed including car and mortage payments that is under 40% of your net income.
Total amount of money borrowed not including mortage payment that is under 20% net income .
Total amount of money borrowed including car and mortage that is under 20% net income .
Total amount of money borrowed not including mortage that is under 40% net income.
If you only pay the minimum on a credit card every month what will happen.
You will avoid all interest charges
Make the final amount you paid for your items much higher than you originally were charged for them
Minimum payments will help you have a plan to pay it off in a decent amount of time.
You will never pay the debt off
The value of what you own including savings, investments, and property are known as
Capital
Character
Credit history
Capacity
This is judged upon your character, capacity, and capital.
Your first loan
Credit worthiness
Character
Capacity
Your financial ability to repay a loan is measured by
Capacity
Character
Credit rating
Credit history
Identity theft can be defined as
Using your parents credit card with their permission
Using someone's face on a meme
Using your parents name to open a credit card without their permission
Opening two credit cards on the same day
