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WorksheetsWhat I Need to Know about CREDIT
Total questions: 30
Worksheet time: 30mins
What is CREDIT?
getting extra points on a test
the level of trust to borrow money and pay it back
the ability to spend your money
allowing someone to borrow your personal belongings
What are the 3 C's of Credit?
Character, Capital, Capacity
Capability, Capital, Capacity
Character, Capital, Correctness
Character, Cooperation, Capacity
What is asked when thinking about CHARACTER in regard to credit?
Do you have personal qualities that show you are trustworthy and reliable?
Do you earn enough money to pay your debts?
Do you have assets and other things of value as collateral?
What is asked when thinking about CAPITAL in regard to credit?
Do you have personal qualities that show you are trustworthy and reliable?
Do you earn enough money to pay your debts?
Do you have assets and other things of value as collateral?
What is asked when thinking about CAPACITY in regard to credit?
Do you have personal qualities that show you are trustworthy and reliable?
Do you earn enough money to pay your debts?
Do you have assets and other things of value as collateral?
All of the following are ways to INCREASE your credit EXCEPT...
Pay all your bills and debts on time.
Show you have a job and income.
Limit your amount of open credit
Open as many credit cards as possible.
What is your CREDIT SCORE?
A number between 300 and 850 that is a prediction of your chances of repaying debts based on your history.
A list of your current credit activity.
A list of your credit history (past activity).
A number you calculate yourself and report to banks.
If you have a credit score of 300, it means you have (a) credit.
If you have a credit score of 850, it means you have (a) credit.
What is a CREDIT REPORT?
A number that tells your level of credit.
A record of your current credit activity only.
A record of your credit history only.
A record of your current credit activity and previous credit history.
How often can you get a FREE copy of your credit report?
weekly
monthly
annually
never, they always cost money
What are the THREE major credit bureaus?
Expert, Equifax, TransUnion
Experian, Equality, TransUnion
Experian, Equifax, TransContinental
Experian, Equifax, TransUnion
What is the MAJOR DIFFERENCE between a DEBIT CARD and a CREDIT CARD?
A debit card is made of paper and a credit card is made of plastic.
A debit card uses your money while a credit card uses borrowed money to make your purchase.
A debit card charges high interest, but all credit cards are interest free.
A debit card uses borrowed money while a credit card uses your money to make your purchases.
A DEBIT CARD, ATM CARD and CHECK CARD are all the same thing!
TRUE
FALSE
A debit card is linked right to your...
credit card
checking account
loan
wallet
A credit card is like a ...
long term loan
short term loan
debit card
When do you pay for purchases on a credit card?
In a few weeks when the bill comes.
It immediately comes out of your checking account when you make the purchase.
Over a long period of time.
It is wise to pay only the minimum due on your credit card each month.
TRUE
FALSE
What happens if you do not pay the full balance of your credit card bill?
You get charged interest on what you owe.
They will put you in jail.
They will start taking your assets and valuables.
Your credit score goes down immediately.
If you forget to pay your credit card bill, your credit score will be affected (go down).
TRUE
FALSE
What is a LOAN?
Money borrowed from a bank or credit union for everyday purchases.
Money borrowed from a bank or credit union for emergencies.
Money borrowed from a bank or credit union for large, expensive purchases.
When do you pay for a loan?
Monthly payments over a longer period of time.
Immediately when the first bill comes.
A loan comes directly out of your checking account.
What is INTEREST?
The amount of money you borrow for the loan.
The extra cost added to the amount of the loan.
The length of time to repay the loan
What is PRINCIPLE?
The amount of money you borrow for the loan.
The extra cost added to the amount of the loan.
The length of time to repay the loan
What is the LOAN TERM?
The amount of money you borrow for the loan.
The extra cost added to the amount of the loan.
The length of time to repay the loan
Credit cards have LOWER interest than loans.
TRUE
FALSE
Your car breaks down and needs an immediate $500 repair. What may be the best method of payment?
Debit Card
Credit Card
Loan
You are looking to buy a house. What would be the best method of payment?
Debit Card
Credit Card
Loan
You are purchasing a light at a neighbor's yard sale. What would be the best method of payment?
Cash
Debit Card
Credit Card
Loan
You buy a few inexpensive groceries at the store and have money in your account to pay. What would be the best method of payment?
Debit Card
Credit Card
Loan
