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WorksheetsChapter 4 Review
Total questions: 24
Worksheet time: 12mins
Something that credit card commercials don't show you is . . .
A. People making payments for months or years on those credit card purchases
B. How much your credit score will grow right away
C. How happy your parents will be that they don't have to lend you cash anymore
D. How great your life will be with payments
When a homeowner takes out a home equity line of credit (HELOC), that loan can only be used for home repairs and renovations.
True
False
Banks and lenders use credit scores to determine . . .
A. The likelihood that someone is able to repay debt
B. A person's financial responsibility
C. How much collateral someone has available to put up for a loan
D. How successful someone is
What group of people pays the highest amount of interest?
A. Young people
B. Rich People
C. Old People
D. College Grads
When you finance a new car, you will end up paying more than the sticker price.
True
False
While it may not always appear so, the majority of Americans live paycheck to paycheck.
What is your greatest wealth-building tool?
Income
Taxes
Expenses
Credit score
What kind of loan requires collateral?
Which of the following is part of the formula that determines a person's FICO score?
yearly income
Their history of payments made to lenders
retirement accuont balance
Total asset value
There are certain things, like renting a car or booking a hotel room, that you cannot do without having a credit card.
True
False
Leasing a car is a method of financing where someone
purchasing a vehicle and paying for it in installments.
Makes monthly payments on but does not own the vehicle
borrowing a vehicle from a friend or family member.
owning a vehicle outright without any financial obligations.
What is the 2nd Foundation?
. Get out and stay out of debt
Save a $500 emergency fund.
Pay cash for your car.
Build wealth and give.
Credit card companies make the most profit from
tax breaks
rewards programs
incentive options with partnering banks
charging interest on partially repaid debts
Why should you regularly check your credit report?
to memorize your current credit score
for signs or errors that could be identity theft
You shouldn't unless you have a credit card
to plan on improving your credit score
The debt snowball method involves . . .
Waiting until the winter months to begin paying off debt
Pooling together money from other people to pay off your debt
Paying off debts from smallest to largest
Paying off debts from largest to smallest
When you buy with credit, you typically spend more than you would with cash or a debit card.
Credit cards that offer flashy rewards like airline miles often . . .
Have no interest payments
Don't offer fraud protection
Charge a high annual fee
Can't be used for personal expenses
What stipulation can car lenders penalize you for if you lease a car?
forget to wash the car regularly
drive out of the state
go over the pre-established mileage cap
park the car outside
A credit score is an indicator of how well someone pays off their debt, not how well they handle money.
Predatory lenders get their negative reputation from . . .
Limiting the amount of time a borrower has to use a loan
Discreetly selling personal bank information
Charging high fees for loans and targeting desperate people
Taking advantage of p
Credit isn't a wealth-building tool, it's a business that makes money for . . .
People who use credit cards
Financial advisors and personal accountants
local businesses and merchants
credit card companies, banks and lenders
When looking over your credit report, it's important to make sure...
Your credit score is under 500
No lines of credit have been opened under your name without your knowledge
At least 5 businesses have requested your credit score
The information listed is over 10 years old
Credit card companies charge stores a 2–3% fee for every purchase made with credit cards. This is called a(n) ...
Merchant Fee
Cash advance fee
Personal fee
Over draft fee
Paying only the minimum payment on a credit card is a good way to pay less for the things you want in life.
False
True
