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WorksheetsCredit_RCU
Total questions: 53
Worksheet time: 53mins
What type of credit would be a credit card?
Revolving
Service
Installment
What type of credit would be a mortgage?
Revolving
Service
Installment
What type of credit would be an auto loan?
Revolving
Service
Installment
_____credit is credit extended in the form of services, like utilities. Examples of ______credit include heat, electricity, water, phones, and similar services
Revolving
Service
Installment
In the credit market, who is the supplier?
Buyers
Consumers
Lenders
In the credit market, who is the demander?
Credit card company
Bank
Lenders
Borrowers
For a high school senior who is 17, what is the BEST way to build your credit?
Get a credit card
Get a debit card
Become an authorized signer on a parent's credit card
For a high school senior who is 18, what is the safest way to responsibly build your credit?
Get a credit card
Get a debit card
Become a co-borrower/co-signer on your parent's credit card
For your 1st credit card, where is it best to get it?
From a retailer like Macy's
From Walmart or Amazon
From a financial institution
When you are 18, what do you need to have in order to get an UNSECURED credit card?
a job
savings from your parents
stocks or bonds
a letter of recommendation from your boss or teacher
What kind of things should you buy on your credit card to establish your credit when you are starting out?
Clothes
Necessities like food and gas
Entertainment
Vacations
What happens when you pay the minimum on your credit card?
You only pay interest, basically
You end up paying more
It takes longer to pay off
All of these are correct
What is NOT an advantage of a DEBIT card?
It helps build your credit.
It helps you establish a relationship with a financial institution.
It shows financial responsibility
Equifax, TransUnion, Experian are examples of _____.
Credit Unions
Banks
Credit reporting services
Credit unions are different from banks because
They offer more types of loans than banks.
They only offer auto loans, not mortgages
Credit Unions are not-for-profit, while banks are for profit institutions.
Why do credit cards have higher interest rates than mortgages and auto loans?
Credit cards are normally unsecured, while auto loans and mortgages are secured.
Mortgages and auto loans are paid over a longer period of time.
Mortgages and auto loans are guaranteed by the government, so they have lower interest rates.
Redwood Credit Union's overdraft fee on a debit card is $29 per transaction. What happens if you buy a Starbuck's for $5 with your DEBIT card and don't have the money?
You won't be able to buy the Starbuck's.
You will pay $29 for the cup of coffee.
You will pay $34 for a cup of coffee, if you include the overdraft fee.
The bank will cover the $5 cost and you can pay them back later for no penalty.
Redwood Credit Union considers a credit score of ____ to be excellent credit.
500
550
650
720
Revolving credit is...
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
a spinning door with money in it
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
What is a credit score?
a number between 300 and 850 representing your creditworthiness
a statistical number that evaluates a consumer's creditworthiness and is based on credit history.
Often referred to as a FICO score
All of the above
What is an interest rate?
it is your level of interest about a certain topic expressed as a percentage of your total interest
The amount in terms of dollars that you have to pay back on a purchase
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
Which of the following is TRUE about a credit report?
It is a complete history of one type of credit you have
Credit reports are maintained by the 5 main credit bureaus
You can get a copy of your credit report for free
You can get a credit report only when you're 21 years old
Which is an exceptional credit score?
672
555
713
813
What type of credit score is this 570?
Average
Great
Poor
Excellent
To build a positive credit history, I should pay cash for all purchases.
True
False
My credit history does not affect my chances for renting my first apartment.
True
False
Paying my bills late could negatively affect my credit history.
True
False
a number assigned to a person that indicates to lenders their capacity to repay a loan.
Credit score
Credit report
Credit history
Credit bureau
Which one is considered a DANGER of using a credit card?
Have at least 5 credit card accounts.
All of these are correct; these are only some of the ways credit can be used.
A credit score is a three-digit numerical rating that reflects how likely you are to fail at paying your debts
A five-digit numerical rating that reflects how likely you are to repay your debt.
A three-digit numerical rating that reflects how likely you are to repay your debt.
A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts
