WorksheetsPersonal Finance Final Exam
Total questions: 33
Worksheet time: 17mins
What is the numerical range for credit scores?
350-850
300-850
350-900
300-900
573 credit score is ______?
Very Good
Fair
Poor
Very Poor
What are the names of the three credit bureaus?
Transequifax, Transiberian, Equality
Experian, Equifax, and TransUnion
Econlowdown, Everfi, Banzai
Wikileaks, Expedia, Transiberian
How many free credit reports are you entitled to each year?
One credit report, from each of the three credit bureaus.
You are not entitled to a free report.
Six credit reports, from each of the three credit bureaus.
Two credit reports, from each of the three credit bureaus
What is interest? (In relationship to the consumer using a form of credit)
The cost you earn in interest.
The annual fee credit companies charge.
The cost of borrowing, if you do not pay your debt in full.
Consumers never pay interest when they borrow.
How much should you always have left over when using a credit card?
70%
$300
Max out
30%
Which of the following is NOT a disadvantage of using credit?
Carrying a balance and paying interest.
Increases a consumers debt they owe.
Safer than carrying cash.
Way too tempting; impulse buying.
What is one advantage of using credit?
Can build good credit history, if used properly.
Carrying a balance and paying interest.
Increases consumers debt.
Way too tempting; impulse buying.
What are the two biggest influences on your credit score?
Frequency of new credit and types of credit.
Payment history and amount of debt
Frequency of new credit and length of credit history.
Amount of debt and types of debt.
Property used to assure payment of a loan is called?
Collateral
Card Reader
Capital gains
Clearinghouse
789 credit score is ______?
Very poor
Good
Exceptional
Very Good
What are the 3 MAIN C's
Character, Collateral, Cooperate
Character, Capacity, Capital
Credit, Collection, Conditions
Capital, Consume, Conditions
What is an unsecured loan?
Loans banks give to older adults with established credit.
A loan that has to be paid back within one month
It's not backed by collateral
Which of the following is NOT an example of an installment loan?
Auto loan
Mortgage loan
Credit Card
Student loan
What is a grace period?
The period of time it takes for a check to clear your bank.
The APR on your loan.
The amount of time between high school and higher education.
Amount of time you have to pay before interest is charged.
671 credit score is ______?
Good
Very good
Fair
Very poor
Why are there laws regarding credit cards?
To protect banks
To protect credit card companies
To protect consumers
To protect the IRS
Is a credit card a secured or unsecured loan?
Secured
Unsecured
APR stands for?
Annual People Rating
Annual Pet Rating
Annual Percentage Rating
Annual Profit Rating
The FICO score is the most commonly used credit score in the United States?
Yes
No
What is the individual's ability to repay the loan?
Capacity
Character
Collateral
Credit Card
627 credit score is ______?
Poor
Fair
Good
Very Good
What is the individual's reliability to repay the loan?
Character
Capacity
Collateral
Credit Card
What assets does the individual own that could be sold to repay the loan?
Collateral
Character
Capacity
Credit Card
Examples of predatory/alternative lending can include all except.
Payday loans & tax refund anticipation loans
Federal Student Loans
Pawnshops
Check cashing services
A cosigner on a loan has no legal obligation to pay the loan back.
True
False
Credit cards are also referred to as
Installment credit
Revolving credit
Loan
Low interest credit option
Having bad credit can cause
Higher auto insurance premiums
Lower auto insurance premiums
Lower credit card APR
Lower auto loan APR
Student loans are usually NOT forgiven if a person declares bankruptcy?
True
False
If you pay off your credit card bill before the due date, what impact does that have on your credit score?
Positive
Negative
Unchanged
Can a credit company charge you interest if you fully pay your credit card statement?
Yes
No
Some
Unchanged
What is not a good example to promote a positive credit score?
On time payments
Paying more than the minimum
Keeping your oldest credit card
Late payments
What is not a benefit of a credit card?
Flexibility
Builds Credit
Credit Card Fraud
Reward
