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Worksheets

Personal Loans

Total questions: 10

Worksheet time: 18mins

Name
Class
Date
1.

Browse the article (https://www.nerdwallet.com/article/loans/personal-loans/personal-loan-bank-credit-union) and answer the question.


How does your credit score impact the personal loan options you have available?

a)

A lower credit score correlates to a better interest rate and a larger available loan size.

b)

A higher credit score correlates to a poor interest rate and a larger available loan size.

c)

A higher credit score correlates to a better interest rate and a larger available loan size.

d)

A lower credit score correlates to a poor interest rate and a larger available loan size.

2.

Browse the article (https://www.nerdwallet.com/article/loans/personal-loans/personal-loan-bank-credit-union) and answer the question.


List at least 3 types of lenders who grant personal loans.

a)

Traditional banking institutions

b)

Credit unions

c)

Credit card companies

d)

Peer-to-peer lending sites

3.

Browse the article (https://www.nerdwallet.com/article/loans/personal-loans/personal-loan-bank-credit-union) and answer the question.


What factors, other than rate, should you consider before choosing a personal loan? Select all that apply.

a)

Flexibility to reschedule a payment

b)

Unemployment guarantees

c)

Interest rate

d)

Rate of return

4.

Browse the article (https://www.usnews.com/news/business/articles/2015/05/15/why-i-skipped-the-bank-and-took-out-a-loan-from-my-peers) and answer the question.


What dollar amount of loans have Lending Tree & Prosper (P2P) disbursed so far?

a)

Prosper: $800 million

Combined: $6 billion

b)

Prosper: $600 million

Combined: $8 billion

c)

Prosper: $8 million

Combined: $600 billion

d)

Prosper: $680 million

Combined: $8.6 billion

5.

Browse the article (https://www.usnews.com/news/business/articles/2015/05/15/why-i-skipped-the-bank-and-took-out-a-loan-from-my-peers) and answer the question.


How does that compare to the amount of loans granted by JPMorgan (bank)?

a)

JP Morgan: $8 billion

b)

JP Morgan: $187 million

c)

JP Morgan: $600 billion

d)

JP Morgan: $187 billion

6.

Browse the article (https://www.huffpost.com/entry/5-perks-of-peertopeer-len_b_6547848) and answer the question.


What aspects of peer-to-peer lending make it (frequently, but not always) less expensive to the borrower than traditional bank loans?

a)

Attractive interest rates

b)

Do no make money off of borrower

c)

Fewer fees

d)

Ability to tell story, resulting in lower rate

7.

Browse the article (https://www.huffpost.com/entry/5-perks-of-peertopeer-len_b_6547848) and answer the question.


Which type of lender is more likely to give you a loan if your credit score isn’t great?

a)

Credit unions

b)

Traditional banks

c)

Credit card companies

d)

Peer to peer

8.

Browse the article (https://www.usnews.com/news/business/articles/2015/05/15/why-i-skipped-the-bank-and-took-out-a-loan-from-my-peers) and answer the question.


With P2P, who is bearing the risk of the borrower defaulting on the loan?

a)

The peer who is lending

b)

There is no risk involved

c)

The peer who co-signs

d)

The peer who is borrowing

9.

Browse the article (https://www.usnews.com/news/business/articles/2015/05/15/why-i-skipped-the-bank-and-took-out-a-loan-from-my-peers) and answer the question.


With a traditional bank, who is bearing the risk of the borrower defaulting?

a)

The co-signer

b)

The bank

c)

There is no risk

d)

Borrowers are not able to default

10.

Which perk is most intriguing, to you, when looking into peer-to-peer loan options?

a)

Attractive Interest Rates

b)

Quick Funding Speed

c)

Ability to Tell Your Story

d)

Fewer Fees to Pay

e)

Significantly Cheaper than Credit Cards