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WorksheetsPersonal Finance: Credit and Loans
Total questions: 40
Worksheet time: 41mins
Which is the best way to improve your low credit score?
Cancel your credit cards
Buy some large things on credit
Check your credit score
Make on time payments
How long will a late credit card payment remain on your credit report?
As soon as I make the payment
1 year
7 years
10 years
Which of the following most likely represents a fixed rate, secured debt?
A credit card
A dealer financed auto loan
A debit card
A home equity line of credit
What is NOT included in an individual’s credit report?
Account balances
Bankruptcies and foreclosures
Current address
Medical information
What is a line of credit extended to individuals or businesses who may use it as often as desired up to a specific dollar limit?
Annual Percentage Rate
Credit Cards
Intermediate-term Loans
Revolving Credit
What are loans will be in repayment for less than an 18 month time period?
Intermediate-term Loans
Long-term Loans
Short-term Loans
Mortgage loans
What loans will be in repayment for more than 10 years?
Car Loans
Intermediate-term Loans
Long-term Loans
Short-term Loans
What are the fees for getting cash advances, making a late payment or exceeding your credit limit?
Annual Fees
Bank Fees
Lost Card Fees
Transaction Fees
What is the measure of the cost of credit; expressed as a yearly rate?
Annual Percentage Rate
Credit
FICO Scores
Revolving Credit
What is the highest credit score number?
650
700
850
900
A home owner must pay monthly: Click all that are true.
One-time Loan origination fees
Interest
Taxes
Insurance
The more of a down payment you make the (Two are correct)
Lower your interest rate
Lower your monthly payment
Lower your taxes
Lower your home owner insurance
A fixed rate means
The rate will stay the same for 5 years
The rate will stay the same for 2 years
The rate will stay the same for the length of the loan
The rate will stay the same for 1 year
The higher your FICO score
The higher your interest rates will be
The better your credit
The lower your interest rates will be
The worst your credit
A very good credit rating would be
1000
800
600
400
Reasons your minimum credit card payment may increase are (Click all that apply)
You were late on a previous payment
Your interest rate increased
Your balance increased
You are over your credit limit
If you are late on a credit card payment
You may have to pay a late fee
Your interest rate may increase
You will get coal in your stocking
Your FICO score may be lowered
Those with a college degree, on average, earn thousands of more dollars per year compared to those with just a HS diploma.
True
False
The original amount of money that is borrowed. The amount decreases when you make a payment.
Annual percentage rate (APR)
Loan amount or principal
Down payment
Loan terms
The expected decline in value over time of an item.
Lender
Loan amount or principal
Depreciation
Credit history
The fee charged for the use of money.
Auto loan
Loan terms
Down payment
Annual percentage rate (APR)
An APR of 25.99% in decimal form is....
.02599
.2599
2.599
25.99
Interest can be defined as:
a charge for lending money
the amount owed for borrowing money
the amount added into your savings account when opening a bank account
a charge for convenience of accessing money in your bank
APR stands for
annual profit rate
annual percentage rate
annual participation rate
annuity profit range
When a person declares bankruptcy that fact will appear on the person's credit report for ??
3 years
10 years
Does not appear on report
Which would you buy with a mortgage loan?
Car
House
Holiday
Boat
If the marginal tax rate is 19% how much tax would be charged on an investment of $3, 200?
$608
$60.80
$570
$60, 800
If the original value of an investment is $4, 780 how much is the investment worth after 3 years if inflation averages 2% per year.
$5,072.57
$5,736
$4,875.60
$4,973.11
How do people get trapped in the payday loan cycle?
Customers usually only need to borrow money once
Lenders typically give loans out with a low APR
Customers may visit several payday loan lenders to get $
Lenders typically give out long-term loans
True or False: Most borrowers use payday loans to cover emergencies.
True
False
If you decide to pawn an item of yours, which of the following is TRUE?
You will not pay extra charges besides the APR
The loan amount is usually = to the value of your item
You cannot sell an item to a pawnshop
If you don't come back for you item, the pawnshop keeps it
What strategies do most predatory lenders use to attract customers? (hint: choose 2 correct answers)
Short-term loans
High interest rates
Quick access to cash
Credit score is not taken into consideration
What is a disadvantage of a rent-to-own transaction?
A credit check is not always necessary
There are usually no down payments needed
The consumer ends up paying more than the value of the item
The item may be delivered to your house or apartment
What is a risk of co-signing a loan for a family or friend?
You are likely to get a higher APR
You have a shorter loan term
You become the primary borrower on the loan
You may be held responsible for the debt
The probability of winning the lottery is...
1 in 1,000,000
1 in 75,000,000
1 in 100,000,000
1 in 175,000,000
How can identity theft impact you?
You may get new credit card offers in the mail
You may be rejected for new lines of credit
You can get a lower interest rate on an existing loan
ID theft doesn't impact you, only your credit score
What will lower your credit score? Select all the apply.
late paying your payments
Not paying your payments
Declaring Bankruptcy
Paying all your bills on time.
Owing too much money on your credit cards.
Bankruptcy is
Asking someone to take your debts
Having the courts to manage your debts, maybe erasing some.
Asking a bank to make a loan to you.
a way of skipping out on what you owe and starting over.
