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WorksheetsCredit
Total questions: 15
Worksheet time: 30mins
1. A disadvantage of using credit is impulse buying.
True
False
Capital refers to a person’s ability to pay.
True
False
A steady employment record helps a person’s credit history.
True
False
Installment credit usually allows a person to make additional purchases on an account.
True
False
Using the 20-10 rule, a person making $40,000 a year after taxes should have no more than $20,000 of outstanding debt.
True
False
A common advantage of using credit is:
less impulse buying
lower costs for items purchased
ability to obtain needed items now
lower chance of overspending
A person’s regular income is referred to as:
character
capital
collateral
capacity
To build a credit history, a person could:
establish a steady employment record
file their taxes on time
use the ATM several time a month
request to view their credit report
Utility companies and medical service organizations commonly offer ______ credit.
revolving
single payment
installment
retail
Using the 20-10 rule, a person earning $1,500 a month should not have monthly credit payments that exceed:
$300
$150
$20
$30
Ana Gonzalez is considering a loan to finance her college education. She currently owes money on several charge accounts and credit cards. What actions would you recommend?
(a)
In order to determine whither or not to grant you credit, a lender may ask you:
how much you have saved
what other credit accounts you have
how much you earn
all of the above
Which is not one of the five C's of credit?
Capital
capacity
caution
character
In order to maintain good credit, you should:
never use credit cards
never purchase more than you can afford
charge at least $500 a month
never establish credit
If you are denied credit, you:
can not do anything about it
must be informed about the reason for the denial
should not ask about why you were denied
should reapply again after 6 months
