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WorksheetsCredit Quiz
Total questions: 19
Worksheet time: 15mins
What is the ability to borrow money with the promise to pay it back later called?
dividends
credit
insurance
interest
What is a secured loan?
Student loan
New car loan
Which is NOT one of the 3 large credit reporting agencies?
Experian
Equifax
Transunion
Merck
What is a DISADVANTAGE of using debit cards, electronic transfers, and ATM cards?
Interest earned or charged on interest is called...
simple interest
compound interest
interest rate
inflation rate
The cost to use someone else's money for a period of time is called the.....?
Which loan has fixed payments that are the same each month?
a closed ended loan
an open ended loan
The lowest dollar amount that a person is required to pay to the credit card company is the...?
minimum interest rate
monthly fee payment
minimum payment
principal payment
Which of the following is an example of open-ended or revolving credit?
A mortgage
A car loan
A credit card
installment loans
What is an example of an unsecured loan?
A car loan
A loan taken on a life insurance policy.
A pawnshop loan
A student loan
Jose has a car loan for which he will make monthly payments over five years. He has a(an):
balloon payment loan
unsecured loan
close-ended or installment loan
open-ended or revolving loan
Paul opened his credit card bill and was surprised by the amount he owed. He cannot pay the full amount of the bill this month. The lowest dollar amount Paul is required to pay by the credit card company is the:
monthly fee payment
interest payment
minimum payment
principal payment
To improve an UNFAVORABLE (BAD) credit rating, a person should...
pay bills on time
apply for more credit
open a checking account
borrow more money
When a person declares Chapter 7 bankruptcy, that fact will appear on the person's credit report:
For a two year period of time
Until the person pays ALL debts owed.
Until the person is able to receive a new credit card.
For 10 years.
What is a credit score?
A credit formula based ONLY on a person's earnings.
A number that can be used to determine whether a person qualifies for credit and the interest rate she should be charged.
A measure used to indicate a person's gross wealth.
A reward system that is based on the number of credit cards a person has.
An advantage of declaring bankruptcy is...
It appear on your credit rating for a long time
Most debts to creditors are eliminated.
Applying for new loans is easier.
It makes it difficult to get credit or get a mortgage.
An assessment based on a borrower's credit history that is used by creditors to determine whether he or she is likely to default on (fail to repay) their debts.
Responsibility
Creditworthiness
Liability
Trustworthiness
If you borrow $25,000 from Wells Fargo Bank to purchase a car, the $25,000 is called the...
principal
savings
finance charge
interest
Your credit card was stolen, and the billing statement shows unauthorized purchases for more than $2,000. If you call the credit card company immediately, this law requires these purchases to be corrected.
Equal Credit Opportunity Act
Fair Credit Reporting Act
Fair Credit Billing Act
Fair Debt Collection Practices Act
