Font size
WorksheetsWhat is credit?
Total questions: 20
Worksheet time: 17mins
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 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
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"
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
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 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 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
Applying for a credit card only affects your credit score if you use the card.
False
True
Payment history accounts for around _______ of your credit score.
1/2
3/4
35%
90%
Which of these show your credit history?
Credit score
Credit report
Both
Which of the following probably has the highest credit score? Assume that all of them have made regular monthly payments on time.
An 18 year old college freshman
A 20 year old waitress with two active credit cards
A 40 year old business owner with two cars, a house, and four active credit cards
A 50 year old with five credit cards who rents his house.
