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WorksheetsFinancial Literacy 2 Credit and Debt
Total questions: 10
Worksheet time: 5mins
Using a loan could help with the purchase of which of the following?
A house
A new television
A dream wedding
Airline tickets to your dream vacation
Which item is important to consider when selecting a credit card?
Annual Percentage Rate (APR)
Fees
The look of the credit card
Both APR and fees
The cost of a secured loan is typically lower than the cost of an unsecured loan because _____.
it requires collateral
the loan takes longer to get.
it has high interest rate.
your parents will make sure you pay it back.
To maintain a good credit score you must ______.
manage your debt wisely
check your credit score every week.
have credit monitoring.
have many open credit cards.
What will happen to your credit score if you do not manage your debt wisely?
Your credit score will go down
You won't be able to track your credit score
Your credit score will go up
It will not affect your credit score
Recommended methods to protect yourself from identity theft and fraud include _______.
Monitoring your credit report every 2-3 years
Placing a credit freeze with the credit bureaus.
Allowing inaccurate information to be removed from your report after 7 years.
Utilizing a specialty locking or monitoring service.
Paying only the minimum balance on your credit card can lead to ...
an increase in credit score
paying more interest
late fees
all answers are correct
When looking for pre-approval on a car loan you should.....
get a loan from the car dealer directly to keep things simple
select the loan that has the longest repayment period
compare pre-approval offers and select the one that is best for you
What could be a good option available to you if you are behind on loan payments?
A financial institution may offer for you to pay a litlte now and pay the rest after your next pay day
You can ignore your payments until the financial institution ask about them.
You can take out a payday loan
Ask your financial institution to get out of the loan contract
Credit cards can help _______ when paid off on time regularly.
build credit history
act as a form of identification
lower your debt
balance your checking account
