WorksheetsCredit
Total questions: 20
Worksheet time: 40mins
A person lost his job and is unable to pay his credit card bills. What is the first action he should take to prevent his credit score from being lowered?
Write to the credit reporting agencies for a credit report
Call the credit card company to work out a payment plan
Apply for another credit card
Only pay the credit card with the highest balance
Credit card issuers are required to disclose terms such as due dates, year to date totals on interests, and fees, so that the credit card holder will know the result of -
sub prime rates
pre-payment plans
having a cosigner on the account
making only minimum payments
A person's assets include his
money in a savings account
credit score
health insurance benefits
line of credit
Amy receives a credit card bill of $1,000 with a minimum payment due of $250. Amy sends the company a check for $100 before the due date. As a result, Amy's credit card company will -
accept the $100 as satisfying the payment requirement
immediately cancel Amy's credit card
charge a late fee on Amy's account
add $150 to Amy's next bill
Someone can know their net worth by determining the dollar vallue of their
savings and property
mortgage and credit card expenses
assets plus liabilities
assets minus liabilities
Credit card companies often offer promotional or introductory interest rates which are usually -
given to people with that credit card
guaranteed if the person makes monthly payments on time
raised after the promotional period expires
changed during the promotional period if the minimum payment is made
Jordan was approved for a loan that combines all his debts into one loan with a lower payment based on a longer repayment period or lower APR.
balloon payment loan
predatory loan
collateralized loan
consolidated loan
Collateral is defined as
a form of credit
something of value that secures a loan to protect the lender
something that explains a person's credit history to their lender
a requirement for all loans
A mortgage is a loan used to -
purchase a house
pay for vacation
buy a car
purchase a boat
Before a person borrows money from a bank to make a major purchase, which question is most important for the person to answer?
How much interest will be paid over the life of the loan, increasing the actual cost of the item?
Will I ever have to borrow money again from this bank?
When will this item have to be replaced in the future?
Can I pay for the item purchased with my credit card each month over a two-year period?
Having a low credit score usually means that -
a person has a low income or net worth
it will be easier for a person to get a credit card with a low interest rate
a person has a poor credit history
it will be easier for a person to get a low interest rate when borrowing money
Which of the following is considered the BEST credit score?
430
652
703
800
Which of the following information about most student loans is true?
It is generally the cheapest way to pay for a college education
A person's credit score will increase when the government is the lender
Payments for student loans must begin 6 months after graduation from college
The maximum amount a person can borrow for a student is a total of $25,000
Which of the following options will help a person establish a credit history?
Getting and responsibly using a store charge account
Opening a free checking account in a local bank for paying bills
Having a safe deposit box
Borrowing money from friends and relatives
A 20 year old with a part-time job has a gasoline charge card, two bank credit cards, and two department store charge cards. Her application for another credit card was just denied. The MOST LIKELY reason for this is that
consumers can not have more than 5 credit cards
she is not old enough to get another credit card
creditors feel that the total amount she can charge on cards is more than her ability to repay
she needs a financial plan
A person has a student loan that he has to repay after he graduates. He will make his monthly payments over 10 years. What type of loan does he have?
Secured
Adjustable
Diversified
Installment
A person who was not making payments on their loan got a court order against them which required their employer to withhold part of their wages to repay the balance of the loan. This court order is called a -
wage assignment
bankruptcy
garnishment
lawyers judgment
People who obtain loans from payday loan stores, title loan offices, or pawn shops are most likely -
consumers with low credit scores unable to obtain a bank loan
employed individuals eligible for job promotions
students using their scholarships as collateral
people afraid of losing their Social Security benefits by borrowing from a bank
Which of the following is true about loans?
The lower the APR, the more interest is paid
The larger the down payment, the lower the amount of the loan
The shorter the length of the loan, the smaller the amount of each payment
The higher the APR, the less interest is paid
A creditor determines a person's creditworthiness based on the person's
address
gender, age, and health
education
character, collateral, and capacity
