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Credit Study Guide

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which term represents INTEREST and ALL OTHER FEES added on to a credit purchase?

a)

Annual Fee

b)

Introductory Rate

c)

Finance Charges

2.

The least amount of money required to be paid each month.

a)

Grace Period

b)

Minimum Payment

c)

Credit Score Fee

3.

Introductory Rates are also known as

a)

Teaser Rates

b)

Annual Percentage Rate

c)

Annual Fee Rates

4.

The highest amount that can be charged to your credit account

a)

APR limit

b)

Credit limit

c)

Free period limit

5.

What fee will you pay if you go over your credit limit?

a)

Grace Period fee

b)

Over the limit fee

c)

Minimum fee

6.

This is an example of an advantage of using credit :

a)

Interest and Fees

b)

Purchasing Power

c)

Overspending

7.

Having GOOD credit, means you are a low-risk borrower

a)

True

b)

False

8.

Once your credit score is calculated, there is nothing you can do to change it.

a)

True

b)

False

9.

After paying off the balance, which type of credit remains open to be used again?

a)

service credit

b)

open end credit

c)

closed end credit

10.

Which of these is NOT part of your credit score?

a)

length of credit history

b)

payment history

c)

high school grades

d)

total amount you owe

11.

A credit score is also known as a FICO score.

a)

True

b)

False

12.

Each of the credit agencies use a different formula scoring model, so you might have three different credit scores.

a)

True

b)

False

13.

An agreement to receive a service now and pay for it later is called:

a)

Service Credit

b)

Open End Credit

c)

Closed End Credit

14.

Creating too many new credit accounts will improve your credit score.

a)

True

b)

False

15.

580 FICO SCORE

a)

GOOD

b)

BAD

16.

670 FICO SCORE

a)

GOOD

b)

BAD

17.

Having Good Credit means you are more likely to?

a)

be offered a job

b)

be offered loans with better terms

c)

be offered low rates on car insurance

d)

all of the above

18.

Money borrowed to buy something now with the understanding that you will be paid back in the future.

a)

credit

b)

cash

c)

debit

19.

A three digit number rating a consumer as a credit risk.

a)

Credit Score

b)

Scoring Options

c)

FOMO Score

20.

Creditworthiness

a)

Term used to determine how trusted you are to repay borrowed money.

b)

Term used to see if you can be responsible.

c)

Term used to find out if you care about your credit.