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MCP Financial Literacy Borrowing (4)

Total questions: 20

Worksheet time: 9mins

Name
Class
Date
1.

What is the best way to manage credit and debt?

a)

use rewards

b)

spend now worry later

c)

Make big purchases

d)

set goals and budget

2.

Select all the main credit card types

a)

VISA

b)

Mastercard

c)

American Express

d)

Disney

3.
The fee a credit card company charges a credit card holder to use the card for a year.
a)
Annual Fee
b)
Annual Percentage Rate (APR)
c)
Bad Credit
d)
Charge Card
4.
A written record of a person's use of credit, including applying for credit, and using credit or loans to make purchases. Also called a credit report
a)
Credit History
b)
Credit Limit
c)
Good Credit
d)
Grace Period
5.
The charge or fee that is added to a loan or credit card payment when the payment is made after the due date.
a)
Late Payment Fee
b)
Line of Credit
c)
Minimum Payment
d)
Mortgage
6.
A preapproved loan amount that a debtor can borrow against, pay back, and borrow again as needed.
a)
Line of Credit
b)
Minimum Payment
c)
Mortgage
d)
Opportunity Cost
7.
The least amount of money to be repaid on a loan or credit card in order to keep the account in good standing.
a)
Minimum Payment
b)
Mortgage
c)
Opportunity Cost
d)
Penalty APR
8.
A higher interest rate charged on new transactions if you have any late fees or missed payments.
a)
Penalty APR
b)
Principal
c)
Service Credit
d)
Store Account
9.

Paying less than the minimum payment on your credit card bill doesn’t count as a missed payment.

a)

True

b)

False

10.
Student loans impact your credit score.
a)
Myth
b)
Fact
11.

What type of credit score is this 570?

a)

Average

b)

Great

c)

Poor

d)

Excellent

12.

Which is an exceptional credit score?

a)

672

b)

555

c)

713

d)

813

13.

By law, every American can get a credit report for free how often from the three major bureaus?

a)

Every month

b)

Every five years

c)

Yearly

d)

Quarterly

14.

A late payment on a credit card may show up for how long on your credit report?

a)

Up to a year

b)

Up to five years

c)

Up to seven years

d)

Up to ten years

15.

Who are the three credit bureaus that keep track of your credit?

a)

Amazon, Google, Microsoft

b)

Equifax, Experian, Trans Union

c)

Ethereum, Tether, Monero

d)

Erudite, Anthem, Telescore

16.

True or False: You should avoid "hard pulls" or "hard inquiries" too often as they can damage your credit and stay on your account for up to two years.

a)

True

b)

False

17.

Credit scores are calculated in what numeric range?

a)

0-100

b)

0-1000

c)

300-850

d)

200-900

18.

If you have a credit limit of $1000 on your credit card account, your recurring balance should be kept around which amount?

a)

$0

b)

$100

c)

$500

d)

$950

19.
What is a Credit Bureau"?
a)
A business organization that collects information about your financial transactions.
b)
A business organization that offers a variety of credit cards.
c)
A business that collects and distroys old credit cards.
d)
A bank that only makes loans.
20.
What do creditors mean when they determine id you are "creditworthy" or not?
a)
All of theses answers are correct.
b)
Will you pay it back?
c)
What is your salary?
d)
What other financial obligations do you have?