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WorksheetsCredit and Loans
Total questions: 15
Worksheet time: 8mins
What does defaulting mean?
Getting a good credit score
Building credit history
Failing to pay your debts
Opening many credit card accounts at the same time
Non-installment credit is described how?
Credit when the borrower makes regularly scheduled monthly payments in the same amount
Credit that lets the borrower choose how much of the credit to use and when to pay it
Credit that is paid all at once, in a single payment within a specific time period without interest
Credit that is granted with a very high interest rate
Which of the following is a part of the process of establishing credit?
Talking to a bank teller
Checking your credit rating
Using credit wisely
Applying for a department store credit card
Define financing
Paying back all debts
Using credit to pay for purchases
Using a debit card to make a purchase
Reducing the principal of a loan
Define collateral
Collateral is an asset or group of assets that are linked to a loan
Collateral is a finance charge
Collateral is a down payment
Collateral is a specific type of home loan
Which is the best credit score?
500
850
300
700
Which is NOT part of your credit report?
Your bank balance
Your current home address
The number of times you have filed for bankruptcy
The number of inquiries made about your credit
If you are unable to get a major credit card like Visa, Mastercard, etc., what might you do?
Stop accepting government assistance
Apply for a department store card
Pay less attention to your bank accounts
Make as many cash purchases as possible
If you are too young to be granted credit yet, you need a loan to purchase an expensive item like a car, what might you do?
Ask a friend/family member, to co-sign on the loan
Request your credit history
Allow someone else to apply for the loan for you
Open two lines of credit at the same time
What does a credit counselor do?
Co-signs a loan with you
Collects debt
Convinces your creditors to reduce your debt
Helps you make a plan to resolve financial issues
What is a down payment?
The first payment a borrower makes on the principal of a loan
The interest rate charged on a credit card
A percentage of the total cost of the asset paid by the borrower in cash before the interest is calculated
A fee paid to process a loan application
Which of the following is a part of applying for a loan?
Know your rights as a borrower
Negotiating an interest rate
Pay for an application
Call a credit counselor for advice
A loan that is linked to an asset is a(n)
secured loan
unsecured loan
linked loan
asset loan
To use credit responsibly, you should do what?
Understand the account’s interest rate
Open several different credit accounts
Pay attention to the APR and not the APY
Pay only the minimum payment each month
To use a credit card responsibly, you should do what?
pay off the balance in full each month
understand your interest rate and how credit works
not apply for several credit cards in a short period of time
All of the above
