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Credit, Credit Cards, and Car Loans

Total questions: 20

Worksheet time: 5hrs 0mins

Name
Class
Date
1.

What is debt?

a)

Another word for death

b)

Something, typically money, that is owed or due

c)

A loan on which you do not have to pay interest

d)

That which is incurred during childhood and consummated in college

2.

What is a credit score?

a)

a number between 300 and 850 representing your creditworthiness

b)

a statistical number that evaluates a consumer's creditworthiness and is based on credit history.

c)

Often referred to as a FICO score

d)

All of the above

3.

What is a credit report?

a)

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

b)

A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness

c)

A report which shows which credit cards are better than others

d)

A report invented by Allan Greenspan and credited to Al Gore

4.
When I apply to borrow money for a car, the loan company will most likely look at my credit history.
a)
True
b)
False
5.
My landlord can report my failure to pay rent to a credit reporting agency.
a)
True
b)
False
6.
I should review my credit report for errors.
a)
True
b)
False
7.
A credit report contains my personal information such as my address and social security.
a)
True
b)
False
8.
A bad credit report cannot affect my chances of getting a job.
a)
True
b)
False
9.

Your credit score is not configured off of which of the following:

a)

Payment history

b)

Amount of money owed

c)

Grades in School

d)

Length of credit history

10.

Paying my bills late could negatively affect my credit history.

a)

True

b)

False

11.

a number assigned to a person that indicates to lenders their capacity to repay a loan.

a)

Credit score

b)

Credit report

c)

Credit history

d)

Credit bureau

12.
Numerous credit applications in a short period of time.
a)
Positive Impact
b)
Negative Impact
13.
The credit company can charge interest if the credit card bill is not paid in full by the due date
a)
True
b)
False
14.
You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?
a)
American Express
b)
Chase Sapphire
c)
Neither
d)
All of the above
15.
What is one advantage of having a credit card?
a)
It prevents you from spending more than you earn.
b)
It allows you to make purchases without carrying lots of cash.
c)
It encourages you to budget your money wisely.
d)
It helps you pay off debts that you may have.
16.
How do credit card companies make money?
a)
By charging late fees and interest to their customers.
b)
By making you pay an extra dollar on every purchase.
c)
By charging late fees and interest to stores and other businesses.
d)
By earning interest on the money they have saved up.
17.
A sum paid or charged for the use of money
a)
interest
b)
time
c)
sales tax
d)
principal
18.
You must have insurance on your vehicle?
a)
true
b)
false
19.
Which of the following has no effect on the monthly payment?
a)
Interest Rate
b)
Down Payment
c)
Numbers of months the car is expected to be financed
d)
Length of buyer's driving record
20.

What is the measure of the cost of credit; expressed as a yearly rate?

a)

Annual Percentage Rate

b)

Credit

c)

FICO Scores

d)

Revolving Credit