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WorksheetsReview for Credit Test
Total questions: 18
Worksheet time: 2hrs 30mins
Out of the following categories, which is worth the most when calculating your credit score?
Amounts owed
Length of credit history
New credit
Types of credit
What is the purpose of a credit score?
To help banks and lenders decide how likely you are to pay back money that you borrow
To help friends and family decide whether or not they should trust you
To help the government know what you spend your money on
To help you know how much you credit card balance is
What is a credit report?
The document containing information about the history of money you have borrowed from different lenders
The limit set by the credit card company for how much you can charge on your card
Money that is owed to someone else
A document that tells you your credit card balance every month
Why is it important to review your credit report each year? CHECK 2 BOXES!
Check for errors
Make sure no one is opening accounts in your name
Because it increases your credit score
So you don't get charged interest
Which of the following can NOT be used by creditors to decide whether or not to grant you a loan?
Income
Debt
Gender
Credit history
What is the APR?
Interest rate
Annual fee
Late payment fee
The month your payment is due in
All credit cards have annual fees.
True
False
Christian's credit card has a 6% foreign transaction fee. If he spends $422 on it while in Australia last month, what will be the balance in his account (assuming he didn't make any other purchases that cycle)?
$25.32
$447.32
$442.60
$502.16
What is the name of the box that contains a standard list of fees and rates associated with a credit card?
Schumer Box
Jack in the Box
Credit Score Box
Credit Report
The only way to avoid paying interest on credit card purchases is to...
Pay your bill in full and on time every month
Keep your credit score above 579
Review your credit report 1 time per year
Use different credit cards for every purchase
What happens if you make only the minimum payment on a credit card bill?
You will get charged interest and it will take a long time to pay it off
You will get extra rewards points
You will increase your credit score
Your card will get deactivated
You only had 1 purchase on your credit card this month, a new skateboard that cost $299. Unfortunately, you forgot about this and only have $30 left from your paycheck to put towards the bill. How much interest will you be charged on the remaining balance if the monthly interest rate is 2%?
$4.78
$5.38
$7.22
$6.00
The table shows a credit card balance after 2 months. If the person makes just the minimum payment of $30 in month 2, how much interest will be charged that month on the remaining balance?
$11.07
$11.39
$13.31
$753.09
Joe decides to pay off his $600 credit card bill by making $125 payments every month. This way, it takes him 5 months to pay it off. At the end of 5 months, how much has he paid in interest on the $600, total?
$19.62
$22.02
$94.62
$1.67
Which of the following is NOT a way credit card companies make money?
Transaction fees charged to stores
Interest charged to customers when they don't pay the full amount of their bill
Fees charged to customers for things like paying late
Only giving credit cards to people with perfect credit scores
Which of the following things CANNOT be done with a debit card but CAN be done with a credit card?
Rent a car
Purchase something online
Go into debt
Purchase something at Target
What fraction of the whole is shaded?
1/8
1/16
1/4
2/32
What percent of the whole is shaded?
25%
12.5%
20%
33%
