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B285 Credit

Total questions: 23

Worksheet time: 12mins

Name
Class
Date
1.

If you are denied credit

a)

you have to figure out why

b)

you should go to another creditor as you will likely get approved

c)

you should just cry

d)

the creditor will let you know why

2.

The relationship between the loan term and cost of the loan (aka interest) is

a)

direct relationship as the longer the loan term, the more interest paid

b)

indirect relationship as the longer the loan term, the less interest is paid

c)

there is no relationship between loan term and the amount of interest paid

3.

One way to establish good credit is to

a)

obtain as many credit cards as possible

b)

borrow as much money as possible

c)

pay your bills on time

d)

maximize your credit limit on all of your credit cards

4.

When you cannot pay your car payment and the bank comes and take your car, this is called

a)

mean

b)

unfair

c)

illegal

d)

repossession

5.

This is a loan with a high interest rate that is given to those with low credit scores.

a)

interest only loan

b)

subprime loan

c)

friendly neighborhood bank loan

d)

prime time loan

6.

By which law are lenders are required to provide you with all charges associated with borrowing from them (aka APR)

a)

Fair Credit Reporting Act

b)

Truth in Lending Act

c)

Truth in Billing Act

d)

Fair Credit Billing Act

7.

FICO scoring relates to

a)

the C's of credit

b)

taxes

c)

absolutely nothing

d)

fixed income corporate options

8.

The cosigner of the loan agrees to

a)

investigates your credit score

b)

agrees to nothing

c)

pay the loan if the debtor does not pay

d)

helps you reduce the principal amount of the loan

9.

This type of credit allows you to carry a balance over to the next month

a)

installment credit

b)

revolving credit

c)

auto loan

d)

personal loan

10.

If you credit card is lost or stolen, this is the maximum amount you may be liable for.

a)

half the amount charged

b)

0

c)

the entire balance

d)

$50

11.

Paying your bills on time, demonstrates

a)

character

b)

capacity

c)

capital

d)

collateral

12.

A secured loan is backed by

a)

interest

b)

your promise

c)

a bank

d)

collateral

13.

Earning a regular paycheck and not overspending would impact your

a)

character

b)

capacity

c)

capital

d)

collateral

14.

Owning a home, having an IRA and owning a summer house would be an example of

a)

character

b)

capital

c)

capacity

d)

collateral

15.

A revolving charge account is also called

a)

mortgage

b)

open ended credit card

c)

installment loan

d)

auto loan

16.

An organization that collect consumer data and provides it to creditors, landlords, insurance companies or potential employers is called

a)

credit bureau

b)

BBB

c)

Chase Mobile Banking

d)

current employer

17.

This is an option when you cannot pay your bills

a)

open more lines of credit

b)

close all of your credit card accounts

c)

bankruptcy

d)

identity theft

18.

This allows people with poor credit to obtain a loan with unusually high interest rates.

a)

a high credit score

b)

Truth In Lending

c)

predatory lending

d)

co-signer

19.

An advantage of credit is

a)

being able to use products while you are paying for them

b)

carrying a large amount of cash

c)

impulse buying

d)

no limit on what you can buy

20.

The maximum you are allowed to charge to a credit car is called

a)

quota

b)

credit limit

c)

credit ceiling

d)

equals the amount in your checking account

21.

The time between the last day of your billing cycle and the payment due date on your statement is referred to as

a)

grace period

b)

interest is being charged

c)

you cannot make any more charges

d)

interest is earned

22.

Changing a mortgage loan term from 30 years to 15 years will

a)

increase your overall cost of credit

b)

decrease your overall cost of credit

c)

result in a lower monthly payment

d)

have no impact associated with the loan

23.

Changing the term of your car loan from 3 years to 5 years

a)

increase your overall cost of credit

b)

decrease your overall cost of credit

c)

result in a higher monthly payment

d)

have no impact associated with the loan