WorksheetsUnderstanding Credit
Total questions: 18
Worksheet time: 9mins
The moment you take out a loan, you're starting to build your credit history.
True
False
A car loan doesn't count on your credit report.
True
False
Your credit score is directly related to your credit history.
True
False
Your credit score rarely changes.
True
False
With a credit score in the 300 to 600 range (select all that apply):
getting a credit card or loan should be a piece of cake.
you'll need to work hard to improve your score.
getting a credit card will be a problem.
you will pay more for credit (if you get it at all).
The more credit cards you have, the better your credit score.
True
False
Paying off credit card balances completely and then cancelling the card improves your credit score.
True
False
Credit reporting agencies (TransUnion, Equifax, Experian) can have inaccuracies in their reports.
True
False
A credit card is a type of loan.
True
False
If you sign for a debit card purchase, the funds clear your account faster.
True
False
A debit card is backed by a bank loan.
True
False
It is a good idea to write your PIN on your card so you don't lost or forget it.
True
False
Impulse buying is one of the hazards of carrying a credit card.
True
False
Credit cards usually have the same annual percentage rate (APR) for purchases, cash advances, and balance transfers.
True
False
From Tina's credit score chart, her credit score took the biggest hit when she:
threw a big party and put it all on her credit card
got a second credit card
paid only the minimum payment due on her balance
forgot to tell one credit card company she moved, so her account went past due
What has the highest interest rate (use the "what to look for in a credit card" chart)?
purchases
cash advances
balance transfers
The longer your repayment period for your loan, the more interest you will pay over time.
True
False
Having a high balance (amount owed) on a credit card can damage your credit score.
True
False
