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Credit

Total questions: 32

Worksheet time: 13mins

Name
Class
Date
1.

Credit is paying for goods now but receiving them later.

a)

True

b)

False

2.

Credit is also called "tomorrow's money."

a)

True

b)

False

3.

It's ok to borrow more than you can comfortably afford.

a)

True

b)

False

4.

Items end up costing more when you use credit.

a)

True

b)

False

5.

Which of these is a type of revolving credit?

a)

Mortgage Loan

b)

Car Loan

c)

Credit Card

d)

Checking Account

6.

A secured loan does not require collateral.

a)

True

b)

False

7.

Which type of loan should you avoid?

a)

Payday Loan

b)

Pawn Shop Loan

c)

Cash Advances

d)

All of the above

8.

Ways to maintain a good credit score include:

a)

Paying your bills on time

b)

Maintaining a high balance on your credit card

c)

Applying for multiple cards at department stores

d)

Only using credit cards with a rewards program

9.

What is a sign of too much debt?

a)

Living paycheck to paycheck

b)

Making minimum payments on credit cards

c)

Overdrafts on checking account

d)

All of the above

10.

What is credit (check all that apply)

a)

Your reputation for financial responsibility

b)

Time allowed for repayment

c)

A source of revenue for banks

d)

Unlimited

11.

When is your credit score is important ?

a)

When you apply for college

b)

When you rent an apartment

c)

When you invest in the stock market

d)

When you adopt a pet

12.

When you apply for certain jobs, they check your credit score.

a)

True

b)

False

13.

You don't need good credit to get a new cell phone plan.

a)

True

b)

False

14.

A way for a lender to learn more about you.

a)

Credit Card

b)

Credit Application

c)

Credit Statement

d)

Credit Union

15.

A subsidized student loan is which of the following:

a)

The government pays interest while you're in school at least part-time

b)

The government forgives the loan if you graduate in 4 years

c)

The government charges higher interest rates on subsidized loans

d)

The government refunds payments for good grades

16.

What is the biggest factor of your credit score?

a)

The number of new credit applications

b)

How much debt you have

c)

Your payment history

d)

Your checking account balancer

17.

Which number would you want for your credit score?

a)

770

b)

650

c)

100

d)

1340

18.

What does NOT build credit history?

a)

Maintaining your checking account

b)

Investing in the stock market

c)

Opening a secured credit card

d)

Paying your car loan on time

19.

Types of credit (Choose all that apply)

a)

Personal Loan

b)

CD

c)

Credit Card

d)

Savings Bond

e)

401K

20.

A "rent-to-own" loan

a)

Has low interest rates

b)

is a great option to build credit

c)

is the same as a mortgage loan

d)

allows you to rent furniture and appliances for a period of time

21.

When you use your credit card like an ATM card, this is called a(n)

a)

Payday Loan

b)

Finance Charge

c)

Cash Advance

d)

Collateral

22.

Personal property that is used to secure a loan.

a)

Cash Advance

b)

Payday Loan

c)

Pawnshop Loan

d)

Collateral

23.

A loan against your "anticipated" tax refund check.

a)

Pawnshop Loan

b)

Mortgage Loan

c)

Tax Relief Loan

d)

Refund Anticipation Loan

24.

A short term loan against your next paycheck.

a)

Payday Loan

b)

Pawnshop Loan

c)

Collateral Loan

d)

Cash Advance

25.

This loan is used for purchasing a house.

a)

Rent-to-Own Loan

b)

Mortgage Loan

c)

Payday Loan

d)

Auto Loan

26.

I took my guitar to this place and they gave me a loan based on its value.

a)

Payday Loan

b)

Cash Advance

c)

Refund Anticipation Loan

d)

Pawnshop Loan

27.

The amount you pay the lender each month according to the terms of the loan.

a)

APR

b)

Finance Charge

c)

Payment

d)

Principal

28.

The amount banks charge for borrowing money.

a)

Finance Charge

b)

Term

c)

Principal

d)

Down Payment

29.

The length of time you have to repay your loan.

a)

APR

b)

Principal

c)

Term

d)

Payment

30.

The rate of credit on a yearly basis.

a)

Principal

b)

APR

c)

Finance Charge

d)

Collateral

31.

The amount of money originally borrowed.

a)

Principal

b)

Payment

c)

Down Payment

d)

Finance Charge

32.

The total dollar amount you pay to use credit.

a)

Finance Charge

b)

Cash Advance

c)

APR

d)

Principal