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Worksheets

Credit & Debt Fundamentals

Total questions: 33

Worksheet time: 18mins

Name
Class
Date
1.

Annual Fee

a)
Monthly charge for a service or membership
b)
One-time payment for a service or membership
c)
Bi-annual fee for a service or membership
d)
Yearly charge for a service or membership
2.

Annual Percentage Rate (APR)

a)

A number that shows how much of your overall credit you’re using

b)

The fee you pay for a credit card each year

c)

The interest rate you pay on balances you carry over from month to month to month on a credit card

d)

The amount earned before taxes, benefits, and other payroll deductions are withheld from your paycheck

3.

Authorized user

a)
Someone who has been given permission to access a system or perform certain actions
b)

How deserving you are of getting credit, according to companies that lend money

c)

A person allowed to use a credit card account by the primary cardholder

d)

Someone like a parent, family member, or friend who promises to pay back a loan if you don't

4.

Capacity

a)

Property or financial resources that can be used as insurance in case the loan is not repaid

b)

Your current financial situation and whether you have the resources to pay back a new loan

c)

The maximum amount you can spend on a credit card before you have to start paying it back

d)

Buying something you need now with a promise to pay later. Credit is also a measure of financial wellness

5.

Financial Character

a)

the mental and moral qualities distinctive to an individual

b)

traits like integrity, honesty, courage, loyalty, fortitude, and other important virtues that promote good behavior

c)

the particular combination of things about a person or place, esp. things you cannot see, that make that person or place different from others

d)

have the ability to deal effectively with difficult, unpleasant, or dangerous situations.

6.

Child identity theft

a)

the unauthorized removal of a minor from the custody of the child's natural parents or legally appointed guardians.

b)

the action or crime of stealing

c)

When someone uses a minor’s personal information, such as name, address, or Social Security number to get credit

d)

the crime of taking something that does not belong to you, but not in a way that involves force or the threat of force

7.

Collateral

a)

Property or financial resources that can be used as insurance in case the loan is

not repaid

b)

loans are those that do not require the borrower to pledge any collateral, like personal loans, student loans and unsecured credit cards

c)

Buying something you need now with a promise to pay later

d)

A card that lets you make monthly payments to repay money that you spend

8.

Credit freeze

a)

Cards withdraw money already in your account

b)

A kind of credit card that requires you pay a cash security deposit, usually equal to the

amount of credit the company is offering

c)

A detailed history of how you have borrowed money in the past, including how you

handled paying back loans and credit cards

d)

Restrict access to your credit report so no new accounts can be created because you suspect identity fraud

9.

Credit history

a)

The record of your ability to pay back your debts

b)

Buying something you need now with a promise to pay later. Credit is also a measure

of financial wellness.

c)

Your current financial situation and whether you have the resources to pay back

a new loan

d)

A number determined by your credit history. It helps lenders determine how

creditworthy you are

10.

Credit limit

a)

How deserving you are of getting credit, according to companies that lend money

b)

Your current financial situation and whether you have the resources to pay back

a new loan

c)

The maximum amount you can spend on a credit card before you have to start paying it back

d)

A number determined by your credit history. It helps lenders determine how

creditworthy you are

11.

Credit ratio

a)

A number determined by your credit history. It helps lenders determine how

creditworthy you are

b)

Buying something you need now with a promise to pay later. Credit is also a measure

of financial wellness.

c)

Your current financial situation and whether you have the resources to pay back

a new loan

d)

A number that shows how much of your overall credit you’re using (called utilization)

12.

Credit report

a)

A number determined by your credit history. It helps lenders determine how

creditworthy you are

b)

A detailed history of how you have borrowed money in the past, including how you

handled paying back loans and credit cards

c)

A notice placed on your credit report that alerts credit card companies that you may

have been a victim of identity theft

d)

When a financial institution checks your credit to make a lending decision. Hard

inquiries impact your credit score.

13.

Credit reporting companies

a)

Companies that maintain your credit history - Equifax, Experian, and Trans-Union

b)

A company hired to recover money that people haven’t paid back

c)

When a financial institution checks your credit to make a lending decision. Hard

inquiries impact your credit score.

d)

Credit checks by lenders and other financial institutions to provide preapproval for

credit cards and loans.

14.

Credit score

a)

How deserving you are of getting credit, according to companies that lend money

b)

A number determined by your credit history. It helps lenders determine how

creditworthy you are

c)

When a financial institution checks your credit to make a lending decision. Hard

inquiries impact your credit score.

d)

The interest rate you pay on balances you carry over from month to month on a

credit card

15.

Creditworthy

a)

A number determined by your credit history. It helps lenders determine how

creditworthy you are

b)

A person allowed to use a credit card account by the primary cardholder

c)

How deserving you are of getting credit, according to companies that lend money

d)

The record of your ability to pay back your debts

16.

Debit card

a)

Buying something you need now with a promise to pay later.

b)

A card that lets you make monthly payments to repay money that you spend

c)

A credit card offered to young people that has a lower credit limit but allows the

person to build credit

d)

Cards that can withdraw money already in your account

17.

Debt collection agency

a)

A notice placed on your credit report that alerts credit card companies that you may

have been a victim of identity theft

b)

A company hired to recover money that people haven’t paid back

c)

Companies that maintain your credit history

d)

A federal agency that protects consumers from deceptive and unfair business practices

18.

Federal Trade Commission

(FTC)

a)

Companies that maintain your credit history

b)

A company hired to recover money that people haven’t paid back

c)

A federal agency that protects consumers from deceptive and unfair business practices

d)

The federal agency that monitors stock trades on the stock exchange

19.

Fraud alert

a)

A notice placed on your credit report that alerts credit card companies that you may

have been a victim of identity theft

b)

When a financial institution checks your credit to make a lending decision. Hard

inquiries impact your credit score.

c)

The fraudulent practice of sending emails pretending to be from respectable companies to get people to reveal personal information, such as passwords and credit card numbers

d)

When someone uses a minor’s personal information, such as name, address, or Social

Security number to get credit

20.

Grace period

a)

the physical characteristic of displaying "pretty agility", in the form of elegant movement, poise, or balance.

b)

Accounts that give a borrower a maximum amount of money and are open as long as

the borrower is in good standing with the lender

c)

The time between when you spend money using the credit card and when the

company charges you interest

d)

Buying something you need now with a promise to pay later.

21.

Gross wages

a)

The amount earned after taxes, benefits, and other payroll deductions are withheld from your paycheck

b)

The amount earned before taxes, benefits, and other payroll deductions are withheld from your paycheck

c)

The maximum amount you can spend on a credit card before you have to start paying

it back

d)

Your current financial situation and whether you have the resources to pay back

22.

Hard inquiry

a)

Credit checks by lenders and other financial institutions to provide preapproval for credit cards and loans that do not effect your credit score

b)

The fraudulent practice of sending emails pretending to be from respectable companies to get people to reveal personal information, such as passwords and credit card numbers

c)

A detailed history of how you have borrowed money in the past, including how you

handled paying back loans and credit cards

d)

When a financial institution checks your credit to make a lending decision which does effect your credit score

23.

Installment accounts

a)

A set amount of money given to a person, then paid off over time,

like a car or student loan

b)

Accounts that give a borrower a maximum amount of money and are open as long as

the borrower is in good standing with the lender

c)

The payment on a credit card that is the lowest amount of money

24.

Interest

a)

The interest rate you pay on balances you carry over from month to month on a credit card

b)

A fee that is charged when you pay your bill after the due date

c)

The cost of borrowing money, usually, a percentage of the loan amount

d)

The amount earned after taxes, benefits, and other payroll deductions are withheld

from your paycheck

25.

Late payment fee

a)

A fee that is charged when you pay your bill after the due date

b)

The payment on a credit card that is the lowest amount of money the cardholder can

pay each billing cycle to keep the account's status current

c)

The fee you pay for a credit card each year

d)

How reliable you are in repaying debts

26.

Minimum payment

a)

The maximum amount you can spend on a credit card before you have to start paying it back

b)

The interest rate you pay on balances you carry over from month to month on a credit card

c)

The payment on a credit card that is the lowest amount of money the cardholder can pay each billing cycle to keep the account's status current

d)

The fee you pay for a credit card each year

27.

Net wages

a)

The amount earned before taxes, benefits, and other payroll deductions are withheld from your paycheck

b)

A number determined by your credit history. It helps lenders determine how creditworthy you are

c)

Property or financial resources that can be used as insurance in case the loan is

not repaid

d)

The amount earned after taxes, benefits, and other payroll deductions are withheld from your paycheck

28.

Paystub

(a)  

29.

Phishing

a)

The fraudulent practice of sending emails pretending to be from respectable companies to get people to reveal personal information, such as passwords and credit card numbers

b)

Credit checks by lenders and other financial institutions to provide preapproval for credit cards and loans. Hard inquiries impact your credit score. Soft inquiries do not impact your credit score.

c)

A notice placed on your credit report that alerts credit card companies that you may have been a victim of identity theft

d)

A company hired to recover money that people haven’t paid back

30.

Revolving accounts

a)

A kind of credit card that requires you pay a cash security deposit, usually equal to the amount of credit the company is offering

b)

The payment on a credit card that is the lowest amount of money to keep the borrower in good standing with the lender

c)

Accounts that give a borrower a maximum amount of money and are open as long as the borrower is in good standing with the lender

d)

Buying something you need now with a promise to pay later. Credit is also a measure of financial wellness

31.

Secured credit card

a)

A card that lets you make monthly payments to repay money that you spend

b)

Property or financial resources that can be used as insurance in case the loan is not repaid

c)

A kind of credit card that requires you pay a cash security deposit, usually equal to the amount of credit the company is offering

d)

Restrict access to your credit report and freeze your cards because of identity theft

32.

Soft inquiry

a)

When a financial institution checks your credit to make a lending decision with a negative impact on your credit score

b)

Credit checks by lenders and other financial institutions that have no impact on your credit score

c)

A card that lets you make monthly payments to repay money that you spend

d)

A detailed history of how you have borrowed money in the past, including how you

handled paying back loans and credit cards

33.

Student credit card

(a)