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Basic Credit Card Review

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.
Credit is the ability to _________ and ____________ later. 
a)
Buy now; pay
b)
Save now; spend
c)
defer later; pay now
d)
see; smell
2.
Which of the following is not a typical type of credit
a)
Credit Card
b)
Mortgage
c)

Savings Account

d)
Student Loan
3.
People use credit cards because it is easier than___________________.
a)
bartering
b)
carrying cash
c)
trading
d)

using the visa card

4.
A person should shop around with different lenders to find the best interest rate.
a)
True
b)
False
5.
Which of the following is not considered an advantage of using a credit card?
a)

Credit cards eliminate the need for any savings

b)
Credit cards are useful in emergencies
c)

You can take advantage of rewards offered by credit cards

d)

Credit cards can be cancelled if lost or stolen

6.

Which is NOT one of the three credit reporting agencies?

a)

Equifax

b)

Vanguard

c)

Experian

d)

TransUnion

7.

A consumer will develop a positive credit history if they:

a)

Maintain reasonable amounts of unused credit

b)

Pay phone and utility bills on time

c)

Avoid opening too many new accounts

d)

All of the above

8.
Which of the following would be considered the best credit score?
a)
450
b)

500

c)
850
d)
1050
9.

Which of the following is not one of the 3 C's of credit?

a)
Calculation
b)
Character
c)
Capital
d)

Capacity

10.
How can a cardholder avoid paying interest on a credit card?
a)
Pay the minimum each month
b)
Pay the balance in full each month
c)
Only use a credit card for balance transfers
d)

Interest is always paid on a credit card

11.
Businesses or individuals that make credit available to consumers by loaning money or selling goods and services to them are called _______________?
a)
creditors
b)
collateral
c)
co-signers
d)
annual percentage rate (APR)
12.
When creditors want to know if a person is a good credit risk, they may look to see if that person _______________
a)
makes regular payments.
b)
owns a car, home, stocks, or bonds.
c)
has lived in the same community for a period of time.
d)
All of the above
13.

What is the type of loan used to purchase a home?

a)

Revolving Loan

b)

Mortgage

c)

Small Bsuiness Loan

d)

Student Loan

14.

A credit score determines your creditworthiness to lenders.

a)

True

b)

False

15.

The maximum amount you are allowed to carry as a balance on the card

a)

interest

b)

ARP

c)

credit limit

d)

all of these