WorksheetsCREDIT REVIEW FOR TEST
Total questions: 30
Worksheet time: 15mins
Which of the following is your credit score based on?
payment history
amount owed
new credit opened
all of these
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when:
selecting a bank
choosing a financial advisor
selecting a credit card
selecting a credit union
If you only pay the minimum payment each month on your credit card, what will happen?
you won't incur any interest
it will not take as long to pay off the debt
it won't change anything
you will pay more in interest
If you build a good credit history, it will lead to lower rates on revolving credit.
true
false
Under the Truth in Lending Law,
all organizations must state the true APR that they charge their customers
Under this law, all organizations must state the true credit limit that they charge their customers
Under this law, all organizations must state the true financial insititutions that they use for their customers
none of these are covered under this law
Which of the following is true concerning a credit card?
money is charged to a line of credit for which you are billed later
the convenience of "buy now, pay later" is used
proper use of the credit card can build your credit history, enabling you to get loans at a good interest rate
all of these are true of credit cards
If you spread out your loan repayment over time, it will usually mean a _____________ interest rate.
lower
higher
annual
none of these
Comparing which of the following is the best way to select a credit card?
annual fees
foreign transaction fees
balance transfer fees
APRs
A measure of your financial ability to repay a loan:
character
capacity
capital
collateral
Under Federal Law, a creditor can send your account to a collection agency once it is ____ days past due:
21
31
41
60
NJ has a statute of limitations of ______ years on all types of loans, including credit cards.
5
6
7
9
Which of the following occurs when an employer checks your credit when you apply for a job?
soft inquiry
hard inquiry
final inquiry
legal credit inquiry
What is the best way to manage your credit?
make large purchases on your credit card and pay them off when you can
make small purchases on your credit card and pay them off when you can
make small purchases on your credit card and pay them off in full by the due date
make small purchases on your credit card and pay off the minimum monthly amount
What is the BEST way to maintain a good credit score?
borrow from your friends or parents when you can't make a payment
charge anything you might want only on the holidays
check your credit report once a year
pay all loans and credit card bills on time, managing your debt wisely
If you only pay the minimum payment each month on your credit card, what will happen?
you will not incur any interest charges
you will not incur any annual fees
you will not incur any balance transfer fees
you will incur interest charges on the unpaid amount
If you build a good credit history, what will it lead to?
higher interest paid on revolving credit
a lower credit score
higher interest rates on loans
less interest paid on revolving credit
Which credit score was developed by the Fair Isaac Corporation?
The FIFO Credit Score
The FINO Credit Score
The FICO Credit Score
The FISC Credit Score
Which of the following statements is TRUE?
If you close an old credit card it will raise your credit score.
If you open many different credit cards, it will raise your credit score.
if you pay your bills past the due date, it will raise your credit score.
if you pay your balance in full each month on your credit card, it will raise your credit score.
"Revolving Credit" refers to:
a credit card
paying the balance in full or “carrying over” into the next billing period, but with finance charges
a maximum amount you can spend up to for an account
all of these are true of revolving credit
"Revolving Credit" refers to:
pay the balance in full or “carry over” into the next billing period, but with finance charges
an open line of credit
a maximum amount you can spend up to for that account
all of these are true of revolving credit
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when selecting a:
bank
credit union
credit card
credit bureau
Which of the following wil NOT build credit?
opening a savings and checking account
obtaining a credit card and paying bills on time
getting a car loan
paying less than the minimum monthly payment each month
In which scenario should you take out a loan?
for a used car that you will use to get to work
for a new X box when your old one breaks
for a new pair of expensive sneakers
for the latest new Apple Computer
What will a low credit score result in?
lower rates on loans
higher interest rates on your savings account
lower rates on loans
higher rates on loans
If you pay the full amount on your credit card each month:
your credit score will decline
your credit score will increase
you will have a higher interest rate on loans in the long run
you will not get many credit card rewards
The interest rate charged by your credit card on any balance not paid in full by the due date:
balance transfer fee
maintenance fee
annual percentage rate
annual percentile rate
What is the difference between a credit card and a debit card?
With a debit card, the money is charged to a line of credit for which you are billed later
With a credit card, you take money directly out of an account linked to the card
with a debit card, you can incur late fees
with a debit card, you take money directly out of an account linked to the card
What option will NOT be available if you are behind on loan payments?
you can ask to get out of your loan
The creditor may offer for you to pay a little now and pay the rest after your next pay day.
Your financial institution might allow you to deter the loan but you'll have to pay the interest.
You can borrow money from your friends and family.
If you have a _____ credit score, you will get better interest rates for loans.
low
medium
average
high
Which of the following is your credit score based on?
credit history
credit payments on time or not
amount owed
your credit score is based on all of these
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