Font size
WorksheetsFinancial Management
Total questions: 25
Worksheet time: 29mins
What is credit?
Trust from a creditor/lender that you will repay the funds borrowed.
A small plastic card that allows you pay for something without using cash.
Risk associated with borrowing money.
Interest on good purchased.
What are the five C's of credit?
Capacity, Coloring, Clearing, Creativeness, Coneheads
Capacity, Collection, Collateral, Common Sense, Capital
Capacity, Clearance, Collateral, Character, Capital
Capacity, Conditions, Collateral, Character, Capital
How do you maintain good credit?
Manage your debt, pay your bills on time, establish a good credit history, have a low debt to income ratio.
Get as many credit cards as you can and max them out.
Check your credit report regularly.
Don't get any credit cards.
All of the following are primary sources of income except?
Employment paycheck
Tips
Interest
Loans
What is a credit score?
a small plastic card that lets you make a purchase without cash.
how much money you make compared to how much money you owe?
a number that helps a lender predict how likely an individual is to repay a loan.
What does ARM stand for?
An appendage from your torso with a hand and elbow.
Adjustable rate mortgage.
Adjustable rate money.
Adjustable ratio mortgage.
What are the six things you should do to establish and maintain good credit.
Never pay on time, get lots of credit cards, increase your debt to income ratio, get rid of savings accounts, check your credit report, pay off debt
Pay off debt, check your credit score, read your credit report, don't fix mistakes on it, pay your debts on time, only get a few credit cards.
Pay on time, check your credit score, get lots of credit cards, open a savings account, check your credit report, pay off debt.
Pay bills on time, Avoid late fees, Check your credit report, Pay off debt, Correct mistakes, Get current and stay current.
How do you know when abusive lending is taking place?
when the lender is pressuring you to take a loan.
when you have done your "due diligence" and the loan office does not badger you to sign for the loan.
What are 3 warning signs of debt problems?
delinquent payments
default notices
collection agencies.
paying your bills on time.
What are some additional warning signs of debt problems?
Garnishments
Judgment lien
Avoiding late fees
Collection agencies
Repossessions
What is a savings account?
an account that you can write a draft against to pay for goods.
an account that does not bear interest at a bank or financial institution.
an interest-bearing deposit account held at a bank or financial institution.
an account that purchases stocks and bonds.
What are the 2 types of credit cards?
Private Label and General Label
Private Label and Public Label
Public Label and General Label
Plastic and Metal
What can be sources of credit?
Banks
Retail Stores
Savings & Loans
Credit Unions
Family members
What is a creditor?
The person that collects your possessions if you don't pay your debt.
Someone who the loan or debt is owed to.
What are the 6 questions to ask when applying for credit.
What is the annual fee, What is the annual percentage rate, When are payments due, What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges.
What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges, Is there a penalty for early payment, you don't need to ask questions - you just need to fill out the application.
What are the common parts of a credit application?
Name, date, reason for the loan, what school you go to
Reason for loan, School attended(ing), where you live, documentation, current debts, credit references, your grandparents names, bank references, signature/date
The names of your siblings, how much money you make, your favorite hobbies, your favorite music, references
Reason for the loan, your grades during high school, employment history.
Reason for loan, personal identification info, employment info, mortgage/rental info, documentation, current debts, credit references, collateral, bank references, signature/date
What are the types of credit?
Cash Credit, Sales Credit, Secured Credit, Revolving Credit, Single payment Credit, Installment Credit, I.O.U
Cash Credit, Savings account, Secured Credit, Revolving Credit, Single payment Credit, Installment Credit, I.O.U
Cash Credit, Checking Account, Secured Credit, Revolving Credit, Single payment Credit, Installment Credit, I.O.U
Cash Credit, Your parents, Secured Credit, Revolving Credit, Single payment Credit, Installment Credit, I.O.U
What is character in the 5 C’s of credit?
What percentages make up a typical credit score, as seen in the FICO video pie chart?
What are a few ways to improve your credit score?
What is installment credit?
When you repay a loan over a set period of time with smaller payments to add up to a big payment.
When you have to pay off the balance in full 30 days after you make the purchase.
What is installment credit?
How to Correct Credit Errors?
1. Circle the incorrect items on your credit report.
2. Write a letter to the reporting agency, telling them which information you think is inaccurate. Provide supporting documentation.
3. Send all material by certified mail.
4. Send a similar letter to the creditor whose reports your disagree with. Their reporting agency will conduct an investigation.
5.All of the these are correct
How to Correct Credit Errors?
What is a loan?
