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Worksheets

Credit Cards

Total questions: 20

Worksheet time: 8mins

Name
Class
Date
1.

Why should you worry about having "good credit?" (Select all that apply)

a)

better credit terms

b)

something you can brag about

c)

It can help you achieve big purchase goals like a house or car

d)

bad credit is very expensive to live with

2.

What is important in establishing good credit?

a)

Making payments on time

b)

Being late on payments

c)

Spending 100% of your credit limit

d)

Missing a payment

3.

What is debt?

a)

Another word for death

b)

Something, typically money, that is owed or due

c)

A loan on which you do not have to pay interest

d)

That which is incurred during childhood and consummated in college

4.

What is a credit report?

a)

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

b)

A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness

c)

A report which shows which credit cards are better than others

d)

A report invented by Allan Greenspan and credited to Al Gore

5.

What type of credit score is this 570?

a)

Average

b)

Great

c)

Poor

d)

Excellent

6.

My credit history does not affect my chances for renting my first apartment.

a)

True

b)

False

7.

To build a positive credit history, I should pay cash for all purchases.

a)

True

b)

False

8.
Numerous credit applications in a short period of time.
a)
Positive Impact
b)
Negative Impact
9.
The most common credit scoring system is called the
a)
FCO
b)
FECO
c)
FISO
d)
FICO
10.
The credit score ranges form 
a)
300-800
b)
250-950
c)
350-900
d)
300-850
11.
Which is not included in an individual’s credit report?
a)
Current and past addresses
b)
Account balances
c)
Bankruptcies and foreclosures
d)
Medical information
12.

T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.

a)

True

b)

False

13.

Aisha wants to improve her credit utilization rate. Which of the following can she do? (hint: choose 2 correct answers)

a)

Make several payments in the month instead of a large one

b)

Spread her spending among her 3 credit cards

c)

Keep her credit utilization rate to 55%

d)

Keep her spending all to 1 card; don't use the other 2

14.
What is one advantage of having a credit card?
a)
It prevents you from spending more than you earn.
b)
It allows you to make purchases without carrying lots of cash.
c)
It encourages you to budget your money wisely.
d)
It helps you pay off debts that you may have.
15.
Why would your credit provider give you a credit limit?
a)
To remind you to pay your bill on time.
b)
To prevent you from enjoying the things you buy.
c)
To prevent you from spending more money than you can pay back.
d)
To prevent you from shopping in certain places.
16.
How do credit card companies make money?
a)
By charging late fees and interest to their customers.
b)
By making you pay an extra dollar on every purchase.
c)
By charging late fees and interest to stores and other businesses.
d)
By earning interest on the money they have saved up.
17.

A person would most likely need to use a lender in order to...

a)

buy milk at the grocery store.

b)

buy the newest iPhone.

c)

apply for a credit card.

d)

buy a house.

18.

The rule of thumb for credit card users is not to carry a balance over 30% of your credit limit.

a)

True

b)

False

19.

Parents may add a child who is under 21 as an authorized user to an existing credit card.

a)

False

b)

True

20.
The three major institutions that keep credit records on individuals and businesses are _____, ______, and ______.
a)
Equifax, Experian, Trans Union
b)
Turbo Tax, Experian, Quicken Loans
c)
Equifax, Quicken Loans, H&R Block
d)
H&R Block, Turbo Tax, Trans Union