WorksheetsReview Unit 3A: Managing Credit
Total questions: 18
Worksheet time: 12mins
Paying more than the minimum payment (or paying your balance in full) is beneficial because…
It lowers your interest rate
The lender can’t penalize you for future late payments
You get a discount on future purchases made with credit
You pay less interest overall
If a person with multiple sources of debt has a goal of eliminating one or more of them in as little time as possible, which debt repayment strategy would be best?
High interest method
Snowball method
Stopping payments on all debts but one so you can pay that one off faster
Making the minimum payment
Which of the following is a type of secured debt in which the item you purchased might be seized if you fail to make payments?
Auto loan
Credit card
Student loan
Personal Loan
All of the following appear on your credit report EXCEPT…
Your checking account balance
Student loan payment history
Balance owed on a car loan
Number of active credit accounts
In general, why do so many different types of companies check your credit report?
They’re legally required to do so by the Securities and Exchange Commission (SEC)
To determine the price of the product or service they’re selling you
Doing business with someone with a low credit score will also lower their credit score
They want to make sure you’re likely to make consistent and timely payments
What should you do if you find errors in your credit report?
Close the affected credit account(s)
Contact the credit reporting agency or the company that provided the information
Call the police to notify them of potential fraud
Report the error on your taxes
The four ways to view your credit score are checking your credit ___ or ___ statement, talk to a non-profit ___, use a credit ___ service or purchase a score directly from ___.
Word Bank:
Score FICO Loan
Card Counselor
Separate your answers with a ; and a space. Ex: read; write
(a)
Which of the following categories make up most of your credit score?
Number of recent hard inquiries
Average length of your credit history
Number of active credit accounts
Payment history and credit utilization
It is best to avoid these in order to improve your payment history…
Credit cards without a rewards program
Late payments
Banks that only offer one type of credit card
Payments greater than the minimum required
It’s beneficial to use some of your available credit because…
The interest you’ll be charged goes up for every month you don’t use any credit
Banks require you to use some form of credit in order to have an account with them
It shows you can responsibly use credit and builds your credit history
Employers are less likely to hire you if you don’t have a balance on your credit card
Which age group has the highest percentage of people with a credit score of 620 or less?
(a)
At which age group do you start to see more people with a score above 780 compared to below 621?
(a)
What score is the highest percentage in the 30 or younger range?
(a)
Which age group has the lowest percentage of people with a score of 681-720?
(a)
In which credit score range do three groups have a common percentage?
(a)
All of the following purchases can be impacted by your credit report EXCEPT…
Getting your own cell phone plan
Leasing an apartment
Applying for a mortgage to buy a house
Buying a TV with cash
Jane needs a cosigner for her loan. Which person would be the best for her to ask to be her cosigner?
Her cousin, who has several fancy cars and must be rich
Her grandfather, who lives on a tight budget
Her sister, who shows her she has a credit score of 735
Her neighbor, who says sharing the loan will allow him to remodel his garage at the same time
How does the interest rate on a loan compare for someone with excellent credit compared to someone with poor credit?
Interest rates are the same regardless of credit score
Interest rates are lower for someone with excellent credit
Interest rates are higher for someone with excellent credit
Interest is not charged for someone with excellent credit
